On Tuesday, the International Monetary Fund cut its global economic forecasts to 3.3% for this year and 3.8% next, citing primarily slower growth in key developing nations as well as a deepening recession in the Eurozone. The IMF also noted that federal spending reductions in the U.S. were weighing on the recovery.
IMF chief economist Olivier Blanchard joined MoneyBeat to discuss the global economy, the threat of China’s credit crisis and whether Europe can get itself out of its debt crisis:
“…there isn’t anything else right now that can pick up the slack of China and the other emerging markets…you have to realize, this is the mother of all crises…the way out is far from obvious.”Here is a direct video link.
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