IMF warns of a 'a major slump reminiscent of the 1930s'
from the Guardian UK:
The International Monetary Fund warned today that the European debt crisis could flare up again at any time and send the global economy back into deep recession.
Olivier Blanchard, the Fund's chief economist, said there was currently "an uneasy calm" following the tensions in financial markets at the end of 2011, with hopes of a gradual recovery dependent on keeping the single currency in one piece.
The IMF also gave the Bank of England the all-clear to add to its £325bn programme of quantitative easing if the UK economy struggles to recover from its longest and deepest recession of the post-war era. The Fund said that there was a risk of a 1930's style slump. "In the current environment of limited policy room, there is also the possibility that several adverse shocks could interact to produce a major slump reminiscent of the 1930s."
Asked about the risks that a country would leave the euro, Blanchard said: "We are doing everything possible so that this does not happen." .....................(more)
The complete piece is at: http://www.guardian.co.uk/business/2012/apr/17/global-economic-recovery-fragile-imf
= new reply since forum marked as read
Just hours ago a link to this was posted on DU.....
Sunnier Outlook for World Economy
April 17, 2012
WASHINGTON (AP) — The International Monetary Fund is more optimistic about the global economy after seeing faster growth in the United States and a coordinated effort in Europe to address its debt crisis.
The monetary fund said Tuesday that the American economy should expand 2.1 percent this year. Europe will most likely shrink 0.3 percent and the world economy should grow 3.5 percent. All three of the I.M.F.’s estimates are slightly better than its January forecasts.
The organization praised European leaders for bulking up its bailout fund and taking other steps to address the crisis. The 17 member nations of the European Union that use the euro currency should emerge from a shallow recession later this year, the fund said.
http://www.nytimes.com/2012/04/18/business/global/imf-raises-global-forecast-for-growth.html?_r=1
I believe your article is probably correct, but these two faced pronouncements by the same organization doesnt instill confidence that they know what they're talking about.
