IMF’s Lagarde defends Europe in heated Davos debate

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But unlike Greece, or other usual targets France and Italy, it was Germany that stirred debate, blamed for a blind push for austerity and imposing its singular economic vision on others.

"It is the failure to recognise that a one-off model that worked to produce export-led growth for Germany in the early part of the decade will lead to an outcome that is worse for everyone now," said former US treasury secretary Lawrence Summers.

"It is the error of assuming that the strategy that worked for one once, when applied universally will work," he said.

Lagarde however doubted that there was that much space for Germany to do anything to help out its neighbours and that little room existed for more public spending.

http://www.brecorder.com/top-news/108-pakistan-top-news/218889-imfs-lagarde-defends-europe-in-heated-davos-debate.html

[KoKo]

1. Odd things from Summers these days...

Who would trust him after his involvement with the Russia when it defaulted and the mess he made there according to some.

Although some reports say, in reviews of his new book, he's "seen the light" over his mistakes.

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2. I like it when they bicker among themselves. nt