US, Japan not immune to euro-type panic: IMF

(WASHINGTON) - The United States and Japan are not immune to the kind of sudden economic crisis that rocked the eurozone, the International Monetary Fund warned Tuesday.

"The speed and severity with which financial pressures spread in the euro area should serve as a cautionary tale to Japan and the United States... The credibility of Japan and the United States could suddenly weaken if sufficiently detailed and ambitious plans to reduce deficits and debts are not forthcoming," the IMF warned in a new report.

Both countries have enjoyed some protection because of the special roles their currencies play in the global economy, the IMF said, allowing them to enjoy ultra-low borrowing rates "even though many of their conventional fiscal indicators ... are no better than in many European countries that currently face significant market pressure."