source.

John Lipsky, IMF’s managing director, says that the global economy will need more support as the Greek financial crisis has shown considerable downsides to the economy.

“Together with strong implementation by euro area countries, notably through actions to put public finances on a sustainable path, they will help sustain the global recovery,” he told the seminar.

However,  some economists, such as Nouriel Roubini, and Dani Rodrik, agree that short-term fiscal aid will not be enough to stabilize the economy for the long run.

“It’s not over,” Roubini said in an interview with BBC radio broadcast today. “What we’re facing right now in the eurozone is a second stage of a typical financial crisis.”

The European Union’s 750 billion-euro ($931 billion) rescue package to stop contagion from Greece hasn’t calmed the markets while questions remain about whether governments are strong enough to implement the austerity measures required, Roubini said. The European Union said today it has transferred the first instalment of emergency loans to Greece, one day before 8.5 billion euros of bonds come due.