Rising interest rates threaten global recovery

[dArKeR]

AFP , WASHINGTON
Friday, Apr 23, 2004,Page 12

The world economy is emerging from a three-year slump with unexpected vigor this year and next, but rising interest rates could pose risks, the IMF said on Wednesday.

World economic growth will bolt from 3.9 percent last year to 4.6 percent this year -- the fastest since 2000 -- and 4.4 percent next year, the IMF said in its semi-annual World Economic Outlook issued ahead of a gathering of World Bank and IMF policymakers.

It was the fund's brightest assessment since the world economy was shocked by the Sept. 11 attacks and then cowed by wars in Afghan-istan and Iraq.

The global economy "seems to be by and large in the springtime of recovery," IMF chief economist Raghuram Rajan said.

Like the fable about the ant and the grasshopper, the fund urges countries to tackle their problems while the good economic conditions are present, Rajan said.

http://www.taipeitimes.com/News/worldbiz/archives/2004/04/23/2003137795

[kalian]

1. Yeah, that's it....

free money to all! Seriously, IF interest rates are permitted to
"lie low", then the world's economies will be awash with paper
money. HYPERinflation anyone? :shrug:

Something strange is going on with the world's economy as a whole.

[bemildred]

2. Tsk, you don't think it's being manipulated, do you? nt