U.N. study savages U.S., European economic policy [View All]

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http://uk.reuters.com/article/2011/09/06/uk-economy-un-report-idUKTRE7852XI20110906

(Reuters) - The pursuit of austerity measures and deficit cuts is pushing the world economy towards disaster in a misguided attempt to please global financial markets, the annual report of the United Nations economic thinktank UNCTAD said on Tuesday.

The report, entitled "Post-crisis policy challenges in the world economy," savaged U.S. and European economic policies and called for wage increases, stricter regulation of financial markets, including a return to a system of managed exchange rates, and a conscious break with market-led thinking.

"The message here is very pragmatic: we need to reverse our course quickly," said UNCTAD Secretary General Supachai Panitchpakdi.

Supachai, a former head of the World Trade Organisation, said the policy response to the crisis, with an emphasis on fiscal tightening, was misconceived and inept.