Bloomberg News

U.S. Treasury’s Brainard Vows to Avert Lagarde’s ‘Lost Decade’

November 09, 2011

Nov. 9 (Bloomberg) -- The U.S. Treasury Department’s top international official vowed that the Obama administration and global leaders won’t allow Europe’s crisis to trigger a so- called lost decade.

“We’re just not going to let that happen,” Lael Brainard, Treasury undersecretary for international affairs, said in Washington today. President Barack Obama is “is absolutely committed to doing what is needed here in the U.S. and to building the consensus to make sure that we accelerate the recovery.”

International Monetary Fund Managing Director Christine Lagarde warned today in a speech in Beijing of the risk of a “lost decade” for the global economy unless nations act together to counter threats to growth.

Japan’s “lost decade” during the 1990s saw the economy slip in and out of recession and grow at an average rate of about 1 percent a year after the collapse of a real-estate bubble.

--Editors: Christopher Wellisz, Vince Golle

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net.

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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