The International Monetary Fund warned of a global economic collapse resulting from misguided policies and urged national leaders to step up their efforts, including providing fiscal and monetary stimulus and implementing the structural reforms necessary to support growth.

During a conference held by the National Association for Business Economics, IMF Deputy Managing Director David Lipton emphasized the need to rationalize government spending and cut taxes, noting that a grave danger threatens national economies: that policymakers around the world have exhausted their options for supporting the economy or have lost the will to do so.

Lepton blamed advanced economies, which bear the greatest burden in driving global economic prosperity, noting that they are the reason the Fund’s latest growth projections have not been met; due to their withdrawal of capital from emerging economies and the sharp contraction in global trade. Lepton, the international expert, called for the formation of joint alliances to build a strong economy.