The Bankruptcy of Single-Gear Economic Policy

Abstract

During the course of her address to the 2011 International Finance Forum in Beijing on 9th November 2011, Christine Lagarde, Managing Director of the International Monetary Fund, issued a timely warning:

The global economy has entered a dangerous and uncertain phase. . If we do not act, and act together, we could enter a downward spiral of uncertainty, financial instability, and a collapse in global demand. Ultimately, we could face a lost decade of low growth and high unemployment.