Welcoming Economic Winter? -- I.M.F. Chief Economist Warns Not Just Of Deep Economic Reversal But Of Second "Great Depression"

"Governments should be ready to increase their spending on economic stimulus programs if circumstances require it, the International Monetary Fund's chief economist Olivier Blanchard said in comments published on Tuesday.

In an interview with French daily Le Monde, Blanchard called on Germany in particular to boost its spending in the next few months as some of its European partners such as France have called for.

"The coming months will be very bad. Halting this loss of confidence, providing stimulus and, if necessary, replacing private demand are essential if we want to prevent the recession from becoming a Great Depression," Blanchard told Le Monde."

Reuters "Governments must be ready to spend more on stimulus: IMF" news.yahoo.com December 23, 2008

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"Governments need to take additional coordinated action to revive world financial markets and get credit flowing again, IMF Managing Director Strauss-Kahn says, warning in a speech in Madrid that the global economic outlook continues to deteriorate."

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Header photo credit: Horse in Carmel Valley, California, last week. (c) Vern Fisher and Monteray County Herald. 2008. All rights reserved. With thanks.

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A heroic rescue in the world of global automobile culture and aging public infrastructure takes place as economic winter begins. River Road, Bethesda, Maryland.

Photo credit: (c) Bill O'Leary and Washington Post. December 23, 2008.