What The World Needs Now Is Demand
You could not be more right in your editorial ("Needed: A new deal on global debt," Sept. 7). The global liquidity squeeze is strangling growth and economies alike. The International Monetary Fund policy of fiscal and monetary contraction is sending the world into a deflationary spiral.
Demand should be restored, and in order to do that we need expansionary measures right now. Of course, the world must work toward free trade, globalization, and macroeconomic stability, but that does not mean choking nations to death.
We ought to continue on the road toward world growth, global trade, and finance, but this is where a regulatory entity with real authority comes in. Such an organization would work with central banks, the IMF, and the World Bank, providing financial help when needed in the form of loans. The world needs to act without delay. Global stability is at stake.