Will 'austerity' lead to a new recession?
The sudden policy shift in developed countries from 'fiscal stimulus' to 'austerity budgets' is causing concern that this will stem the economic recovery and lead to a new global recession.
BY MARTIN KHOR
ActionAid International and Third World Network are pleased to announce the release of a joint study on the potential use of the IMF’s Special Drawing Rights (SDRs) as a tool for both innovative financing and systemic monetary reforms. SDR-derived funds can be applied to critical financing needs for developing and low-income countries, including development, climate finance, and effective measures to counter the impacts of the global economic and financial crisis. Creative use of SDRs could complement measures such as the proposed financial transaction tax and levies on bunker fuels and aviation to raise the sums urgently needed. With international co-operation, SDRs could potentially mobilize more resources than other proposals for new forms of financing.
Last updated on 03 September 2010
