Wild capitalism collapses. Eastern Europe has already suffered the effects, with a 17.6% fall in industrial production in February 2009.
The region is highly vulnerable to the credit crunch since it owes more than 50% of its GDP to Western banks.
The region is highly vulnerable to the credit crunch since it owes more than 50% of its GDP to Western banks.
Millions of people all over the world risk being pushed back into poverty as the economic storm ravages the most vulnerable countries. "The human consequences could be absolutely devastating. This is a truly global crisis, and nobody is escaping,
The IMF said the US is at the epicentre of this crisis just as it was in the Depression, however, the risks are greater this time.
"While the credit boom in the 1920s was largely specific to the US, the boom during 2004-2007 was global, with increased leverage and risk-taking in advanced economies and many emerging economies.
Levels of integration are now much higher than during the inter-war period, so US financial shocks have a larger impact"
Levels of integration are now much higher than during the inter-war period, so US financial shocks have a larger impact"
Mr Strauss-Kahn called for a urgent action to "cleanse banks" of toxic assets and for further fiscal stimulus beyond the 2% of global GDP already agreed.
The impact becomes negative for debt levels that exceed 60% of GDP.
While no countries were named, this would raise questions about Japan, Germany, France, Italy and ultimately Britain and the US after their bank rescues.
Hospodarska zavislost.
Vychodni Evropa dluzi vice nez 50% HDP zapadnim majitelum bank.
Vychodni Evropa dluzi vice nez 50% HDP zapadnim majitelum bank.
Cely svet v riziku velke krize. Je mozna zachrana, a jaka?
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