IMF: World could face a ‘1930s moment’ unless more is done

International Monetary Fund managing director Christine Lagarde warned of a “1930s moment” for the world economy if Europe does not solve its fiscal problems, and said Germany must contribute more money to stave off financial disaster.

In a public appeal Monday at a Berlin think tank, Lagarde voiced what has become a growing unease among fund officials about Europe’s potential to derail the world economy. Any number of events — a messy default in Greece, a bank failure, a disruption in the region’s financial markets – could be a trigger for a global economic meltdown.

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