PARIS, Dec. 23 (Xinhua) -- Governments and central banks should be prepared to take more economic stimulus actions to avoid a new Great Depression, a top economist of the International Monetary Fund (IMF) said Tuesday.
"The coming months will be very bad," economist Olivier Blanchard was quoted by French daily Le Monde as saying.
"Halting the loss of confidence, providing stimulus and, if necessary, replacing private demand are essential" to preventing the recession becoming a new Great Depression, Blanchard said.
A 2-percent GDP growth for the fiscal stimulus seems enough at the moment, but if the circumstance requires it, "countries must be ready to go further - 3 percent or more if necessary," he said.
Blanchard particularly called on Germany to boost its spending next year as some other European countries like France have done.
"The important thing is to support activity and boost confidence now," he added.
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