World faces risk of a lost decade

THE EUROZONE debt crisis risks plunging the global economy into a Japan-style “lost decade”, the head of the International Monetary Fund (IMF) warned yesterday.

“If we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand,” Christine Lagarde said.

Lagarde said she was hopeful the technical details on boosting the European Financial Stability Fund (EFSF) to around €1 trillion would be ready by December.