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(CEP News) Frankfurt - With the global economy likely to contract in 2009 and the recovery in 2010 to be slower than in a typical recession, OECD chief economist Klaus Schmidt-Hebbel foresees further rate cuts from central banks, as well as additional stimulus packages.
"The economic recovery will be much slower than in a typical recession (as) it is a radical financial crisis," Schmidt-Hebbel said at a conference in Brussels, Belgium on Wednesday. "When recession comes together with a financial crisis, downturns are deeper." "We think that in the year 2010 the recovery will be slower than the years 1983, '84, '85," the chief economist added. Schmidt-Hebbel also said that stress is still appearing in money markets and that short-term deflation pressures are being seen. Written by CEP News European Staff in Frankfurt,
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, edited by Nancy Girgis,
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