11/25/2009

The U.S. and Europe could be thrown into another economic downturn by fast increases of interest rates that are intended to control inflation, said Robert Zoellick, president of the World Bank. "Waiting for bubbles to burst and then cleaning up the aftermath is now a new lesson of what not to do do," he said. "But tightening interest rates too abruptly -- especially where recoveries are weak, such as in the U.S. and Europe -- could trigger another downturn."

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