What Will Happen If Every Country Cuts Spending

``And the IMF has issued a new report warning about the challenges to developed countries when governments contract... Normally, tightening of 1pc of GDP in one country leads to a 0.5pc loss of growth after two years. It is another story when half the globe is in trouble and tightening in lockstep. Lost growth would be double if interest rates are already zero, and if everybody cuts spending at once.''