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IMF warns of global recession
If there was no paper money, says Matthew Yglesias at Slate, then the Fed could slash interest rates below zero, and Americans would have no choice but to spend money or see the value of their savings go down.
If there was no paper money, says Matthew Yglesias at Slate, then the Fed could slash interest rates below zero, and Americans would have no choice but to spend money or see the value of their savings go down.
Guntmar Fritz/CORBIS
T

he International Monetary Fund issued a dour economic forecast on Tuesday, warning that the global economy is at heightened risk of slipping back into recession. The prescription to escape this downturn would be more complicated than the coordinated fiscal stimulus that the IMF pushed for in 2009, when the world climbed out of the last recession. "Risks for a serious global slowdown are alarmingly high," said the IMF's World Economic Outlook report, as growth slows in nearly every major nation. The only notable exception: The U.S., which got a 0.1 percentage point boost, to 2.2 percent expansion this year, from the IMF's last estimate.

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