A combination of individual and collective fiscal reform is needed to save the global financial system.
That is the opinion of Christine Lagarde, managing director of the International Monetary Fund (IMF), who believes the restoration of sustained and balanced economic growth is the primary challenge faced by struggling nations at present.
During a speech entitled Anchoring Stability to Sustain Higher and Better Growth delivered yesterday (7 May) at the University of Zurich, Ms Lagarde - who is also the current president of the G20 - explained that credible and well-paced policies are crucial to achieving this goal.
"With the wrong choices, we risk losing a decade of growth, a generation of young people - and an opportunity to put the global economy on a secure footing," she noted.
At present, the IMF anticipates overall worldwide expansion of around 3.5 per cent in 2012.
However, Ms Lagarde went on to say the fact some 200 million individuals globally are unemployed represents a "potential disaster - in economic, social and human terms".
By Asim Shah