Fiscal austerity policies pushed by some states are driving the global economy towards a recession, according to the UN Conference on Trade and Development policy analysis. “The vicious circle induced by fiscal contraction, weak financial institutions and financially fragile households is fuelling a crisis of confidence and holding back investment and job creation in the private and public sectors simultaneously.” “The countries threatened by recession and deflation should avoid intensified austerity measures because these are unlikely to produce the intended outcomes and could propel the world into a renewed bout of recession, or even into an outright depression,” UNCTAD cautioned. Read:-“Fiscal Austerity Pushing Globe into Recession” - diplomaticallyincorrect.org/films/blog_post/fiscal-austerity-pushing-globe-into-recession-by-ambassador-mo/42226 G-20 Developed Countries Ignoring Risk? The economic contraction will affect emerging and developing economies alike, UNCTAD warned, stressing the need to prepare contingency plans. “Unless there is a rapid policy turnaround, the world is in danger of repeating the mistakes of the 1930s.” See from OECD Highly Insightful Film Report – “Economic Risks Downside”- diplomaticallyincorrect.org/films/movie/economic-risks-downside-oecd/29294 The Group of 20 (G20) major economies initially seemed to recognize the threat of fiscal austerity to the global economy, but recent actions have not been consistent with that recognition, according to UNCTAD. “In particular, the fiscal restraint in the countries with current account surpluses and very low long-run interest rates in Europe, point precisely in the wrong direction. A fragile global economy has a significant interest in the implementation of expansionary, rather than contractionary, fiscal policies in key economies, Only the former can open a path towards lower fiscal deficits and falling public debt ratios. A ‘lost decade’ for the world economy would risk the development gains achieved during the recent years, and throw into question the ability of democratic governments to tackle the most urgent challenges of our age.” (Read: -“More Jobs Needed or Globe Could Sink into Recession- diplomaticallyincorrect.org/films/blog_post/more-jobs-needed-or-globe-could-sink-into-recession-social-crisis-un-report-money-flash-by-ambassador-mo/39100). Link to UNCTAD & Study/Brief Undertaken - www.unctad.org/Templates/Startpage.asp?intItemID=2068&lang=1 By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect”

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 International Financial Crisis Channel - diplomaticallyincorrect.org/c/international-financial-crisis