IMF Head: Downside Risks To Global Economy 'Piling Up'

WASHINGTON (Dow Jones)--Downside risks to the global economy are compounding, creating a crisis of confidence in markets around the globe, the head of the International Monetary Fund warned Friday.

"The bad news is that there are downside risks on the horizon, and they are piling up," IMF Managing Director Christine Lagarde told finance ministers and central bankers at the IMF and World Bank's fall meetings.

Kudrin Says Global Economy Faces a ‘Lost Decade’ of Slow Growth

The global economy is facing a decade of slow growth that will make it harder for countries to service debts, Russian Finance Minister Alexei Kudrin said.

“The expectation now is that growth will be weak for three to 10 years,” Kudrin told reporters late yesterday in Washington. “We’re in for a lost decade. It’s already clearer that growth rates will be low and that the fight to keep growth from dying out will take many years. Most likely, about five to 10 years.”

Britain's FTSE plunges on fears over global economy

LONDON, Sept 22 (Reuters) - Britain's leading shares were sharply lower across the board on Thursday, tracking hefty falls on Wall Street and in Asia after the U.S. Federal Reserve gave a downbeat assessment of the economy, saying it faced "significant downside risks".

The Fed's cautious comments came as it, as expected, unveiled fresh economic stimulus measures, dubbed "Operation Twist" by the financial markets, which will see it buy more long-term Treasury securities in an effort to lower borrowing rates.

Brazil Warns A Global Economic Crisis Devastating For All

Brazil's President Dilma Rousseff has warned that a full blown economic crisis could be devastating for emerging countries as well as for the world's largest economies.

She added that the global financial situation could also cause a "serious rupture." when speaking at the UN General Assembly in New York.

Euro-Zone Bonds Would Aid Global Economic Stability - CEPR

LONDON -(Dow Jones)- A group of leading economists Monday backed the issuance of euro-zone bonds, not as a way of resolving the currency area's fiscal crisis, but as way of making the global monetary system more stable.

In a report published by the Center for Economic Policy Research, the economists also recommended that swap agreements between leading central banks be made permanent, that the International Monetary Fund be allowed to borrow in the bond markets to boost its lending capacity, that foreign exchange reserves be pooled, and said capital controls should be used to curb "excessive and volatile" investment flows to developing economies.

Brazil's Tombini Urges Global Economic Coordination To End Crisis

LISBON -(Dow Jones)- Central Bank of Brazil President Alexandre Tombini Monday gave a strong warning to matured economies that unless they coordinate efforts to control the sovereign-debt crisis, the global economy will head toward a severe slowdown.

"The economic scenario is extremely complex, and if we don't do anything, it will deteriorate further in the next months," Tombini said at a conference of central banks of Portuguese-speaking countries.

BI prepares measures to anticipate slowing growth

The central bank is preparing a number of measures to anticipate a global economic slowdown triggered by the recent US and European debt crises, as Indonesia gears up to feel the impact next year.

Among the measures are the formation of the Financial System Security Network, the formulation of a crisis management protocol and the strengthening of the ASEAN+3 cooperation, Bank Indonesia (BI) leading researcher Suhaedi said on Tuesday in Jakarta.