Davos 2012: IMF issues austerity warning

Inappropriate spending cuts could "strangle" growth prospects, the head of the IMF has warned.

Austerity programmes must be tailored to each economy, Christine Lagarde said, and not be "across the board".

The International Monetary Fund has been one of those stressing the need for countries to cut their debts, but some fear this could hit growth.

The correct response to the eurozone debt crisis has been a major debate at World Economic Forum in Davos, as Tom Esslemont reports.

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