UN Says ‘Deflationary Spiral’ Looms as Consequence of Austerity
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Premature fiscal austerity in Europe and the U.S. is pushing the global economy closer to a “deflationary spiral” that will choke consumption and leave millions of people without work, the United Nations said.
China, Germany and Japan need to boost domestic consumption while U.S. citizens must start consuming less to start fixing world economic imbalances, the UN said today in its annual Trade and Development report.