IMF Says Tax Increases, Inflation Could Fix Economic Slump

Law360, New York (January 6, 2014, 4:20 PM EST) -- To stave off a potential 20-year period of depressed global economic growth, economic heavyweight countries throughout the world must institute a savings tax, capital controls and higher inflation immediately, according to an International Monetary Fund report released Thursday.

The report by Harvard professors Carmen M. Reinhart and Kenneth S. Rogoff said politicians in the U.S. and the European Union are managing economic expectations by suggesting austerity measures and forbearance strategies alone will fix the slow economic recovery, instead of making tough tax increases and other financial...
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