WSJ: IMF Sees Urgent Need for Stimulus

Todays WSJ reports that the International Monetary Fund is encouraging governments worldwide to “quickly develop large, sustainable fiscal stimulus packages” or face a global “fall in aggregate demand that could be larger than in any period since the Great Depression”.

“A further fall in demand will increase the risk that the perverse dynamics of deflation, rising debt, and associated feedback loops to the financial sector, may materialize,” Fund economists wrote.

Pretty sobering.  I’m sticking with my outlook for a lengthy recovery.

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