International Monetary Fund (IMF) chief Christine Lagarde has warned that the economic crisis in developed economies has entered a "dangerous new phase," worsened by poor political leadership.
Speaking in Washington, Lagarde said that a "vicious cycle" of weak growth and weak balance sheets is gaining momentum, and that the cycle "has been exacerbated by policy indecision and political dysfunction."
She called for bold and collective action to combat a slowing global economy and a worsening European debt crisis.
Next week, Lagarde will preside at her first annual meeting of the IMF, which has 187 member states.
compiled from agency reports