The world could "slide into another downturn" if the euro area fails to restore confidence and ease financial conditions and the US plummets off its "fiscal cliff", according to David Lipton, International Monetary Fund first deputy managing director.
The euro area periphery would experience deep recession, while the core – along with other advanced economies – would suffer contraction or stagnation, Lipton said, in a speech on November 12 at a Chatham House conference in London.
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