Global economies face 'fire and ice' crisis

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World economies face a "fire and ice" dilemma in balancing the threat of slowdown and rising inflation, the IMF warns.

The Fund’s managing director Dominique Strauss-Kahn says the delicate balancing act is something every country needs to tackle, as there is no “one-size-fits-all policy”. Strauss-Kahn says ‘ice’ has to do with the economic slowdown and ‘fire’ is the inflation danger. Earlier this week the IMF warned the unfolding financial market turmoil has created a 25% chance of a global recession, with world growth slowing to 3.7% this year. “You know that we forecast a rather important, serious slowdown in economic growth, which leads us to something around 0.5% as a rate of growth for the United...

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