Three global pressure points worrying the IMF

The IMF recently adjudged the global economy was at heightened risk of falling back into recession. It identified major fault-lines in the US authorities’ failure to address its fiscal challenges, the European authorities’ failure to reach a resolution to its financial and economic woes and the Chinese economic slowdown. Just how real are these areas of stress, and do they pose a threat to the global economy? The US The US certainly faces a challenge in what to do about its impending ‘fiscal cliff’. The Congressional Budget Office (CBO) estimates the size of the fiscal changes would be...