Global Economy Has Entered 'Dangerous New Phase,' IMF Chief Warns | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

Global Economy Has Entered 'Dangerous New Phase,' IMF Chief Warns

"We are certainly living through times of great economic anxiety," International Monetary Fund Managing Director Christine Lagarde said this morning.

"Exactly three years after the collapse of Lehman Brothers," she cautioned in a Washington, D.C., speech, "the economic skies look troubled and turbulent as global activity slows and downside risks increase."

And now, Lagarde warned, "we have entered a dangerous new phase of the crisis. Without collective resolve, the confidence that the world so badly needs will not return."

She urged "leadership over brinksmanship, cooperation over competition, action over reaction," in confronting the global economy's problems. "Policymakers must ... act together," she said. "They must reclaim the spirit of 2008, or the spirit of 1944. The Wilsonian spirit — the belief that the whole is greater than the sum of its parts."

Lagarde called for coordinated action by the world's leading nations to "repair, rebalance, reform [and] rebuild" global financial systems.

As she spoke, The Associated Press reports, stocks were rising because of announcements by central banks in Europe and the U.S. that "they would provide European banks with dollars in three loan installments.

Lagarde, formerly the French finance minister, took over the top post at the IMF this summer following the resignation of Dominique Strauss-Kahn.

Copyright 2011 National Public Radio. To see more, visit http://www.npr.org/.

NPR

How'd A Cartoonist Sell His First Drawing? It Only Took 610 Tries

Tom Toro was a directionless 20-something film school dropout. Then, after an inspired moment at a used book sale, he started submitting drawings to The New Yorker ... and collecting rejection slips.
NPR

Will Environmentalists Fall For Faux Fish Made From Plants?

A handful of chefs and food companies are experimenting with fish-like alternatives to seafood. But the market is still a few steps behind plant-based products for meat and dairy.
NPR

Will We See Veto Battles On Capitol Hill?

With President Obama promising to vetoes, what are the possibilities of a few veto overrides during the next two years? NPR's Arun Rath puts that questions to the National Journal's Fawn Johnson.
NPR

3 Voices, 1 Threat: Personal Stories Of Cyberhacking

In President Obama's State of the Union address, he gave fresh emphasis to a problem that has been in the headlines: cybersecurity. Here are three people who have experienced security breaches.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.