Wednesday, Managing Director of International Monetary Fund, Dominique Strauss-Kahn said in an interview to a Spanish newspaper El Pais that the global economy is expected to contract in the range of 0.5% to 1% in 2009. The exit could happen in the first two quarters of 2010, provided right economic polices are adopted.

Strauss-Kahn said deflation poses short term risk. He added that the central banks of Europe and the U.S. have done a good job with injections of liquidity. But monetary policy is not as effective in this crisis.

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