Global Economy in a dangerous new phase

-The pressing issue has been the europe"s sovereign debit crisis.

In its recent biannual publication, world economic outlook, the international monetary fund warned that the world economy was in a dangerous phase.That warning was issued just days before the annual IMF-World bank meeting of finance ministers and central bank governors in Washington. Despite considerable pressure from other countries,leading european economic powers failed to reach an agreement on a specific bailout plan that would save off a default by one or more eurozone nations.In the last fortnight, financial markets around the world which had witnessed a sell-off, were blacing for a major meltdown. Around the world, stock markets are showing signs of distress. German and french stock markets have shed a third of their value since their peaks this year while UK and US shares have lost their stability.