The world markets expected concrete steps from Washington over the weekend on how governments would resolve the European crisis. They did not get it.

 Instead, the International Monetary Fund’s policy setting body asserted that

the “Euro-area countries will do whatever is necessary to resolve the euro-area sovereign debt crisis”.
 

Unfortunately, this statement seems to be based more on hope and prayer than on evidence.
 

Raghuram Rajan, FT blog September 26, 2011
 

The writer is professor of finance at the University of Chicago’s Booth School and 

author of Fault Lines: How Hidden Fractures Still Threaten the World Economy.
 

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Fault Lines: 

How Hidden Fractures Still Threaten the World Economy

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