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IMF's Christine Lagarde warns of '1930s moment'

IMF chief Christine Lagarde has warned the world faces an economic spiral reminiscent of the 1930s unless action is taken on the eurozone crisis.

Ms Lagarde, speaking in Berlin, warned of a danger of rising unemployment if governments did not act together.

She said the Fund needed 500bn euros more to help sustain those countries worst hit by the eurozone crisis.

She added that Germany's economy depended on the economic health of its customers in other eurozone countries.

Ms Lagarde, who met German Chancellor Angela Merkel, said that the eurozone needed a "larger firewall" to prevent the debt crisis spreading.

Talks between Greece and its creditors were adjourned on Friday amid Greek hopes a large chunk of its debts could be written off.

In a BBC interview, Ms Lagarde said now was the time to act in order to avoid a 1930s-style depression.

She said: "Looking at it from this perspec

Added: Jan-23-2012 Occurred On: Jan-23-2012
World News
Tags: economy, going, down, IMF, chief, says, 2012, 1930s, moment
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