While the media touts that a 2nd great depression may have been averted, the effects of the financial crisis effects are still to be felt. In a speech at the National Association for Business Economics meeting, Jurgen Stark said that "The failure to address long-overdue reform challenges promptly might result in a 'lost decade' for the global economy,".
Mr. Stark is a member of the executive board of the European Central Bank.
"Only partial progress has been made so far, and the distortions that led to global imbalances are still present," Stark added.
- The immediate challenge "is to implement policies to stabilize the economy".
- "We need sound fiscal policies supported by credible fiscal rules,"
- "The main priority will be to devise credible exit strategies to correct large fiscal imbalances."
- "substantial fragilities remain and the outlook is fraught with risks," Stark said.