The "R" Spectre Raises Its Ugly Head

IMF warns of the dangers of global recession

Gary Duncan, Economics Editor

World prospects have deteriorated sharply, with the US economy tipping into recession and a one-in-four chance of global recession, as the toll mounts from the “largest financial shock since the Great Depression”, the IMF said yesterday.

In a bleak assessment, the International Monetary Fund said the world was in the grip of a major financial crisis, fuelled by a US housing slump that continues full blast. It drastically cut its forecasts for the United States and other leading economies over this year and next in its latest World Economic Outlook.

G-7 finance chiefs will hold talks with private-sector bankers
Reuters

They will meet in Washington on Friday to discuss a common response to the financial crisis.

TOKYO: Group of 7 finance chiefs will hold discussions with a group of about 10 private-sector bankers at a meeting this week to help shape a response to the global credit crisis, a Japanese Finance Ministry official said Wednesday.
Can the Group of 7 fix the system itself?

Dollar falls below 7 yuan
Reuters

SHANGHAI: The yuan traded stronger than 7.00 against the U.S. dollar on Thursday for the first time in over a decade, underlining China's growing economic strength and its increasing use of the currency as a policy tool.

The milestone underlined China's growing economic strength and its increasing use of the currency as a policy tool.