The IMF’s false confession | Ashoka Mody at Bruegel.org

 

Deutsch: Dr. Angela Merkel Bundeskanzlerin der...

Deutsch: Dr. Angela Merkel Bundeskanzlerin der Bundesrepublik Deutschland Vorsitzende der CDU Deutschlands (Photo credit: Wikipedia)

This is a MUST READ article by Bruegel, the think-tank. Check it out!

via The IMF’s false confession | Ashoka Mody at Bruegel.org.

Personally, I tend to agree with the main thrust of the article.

I have always felt that Christine Lagrande, the IMF Managing Director was playing politics, rather  than stressing the independence of the IMF’s economic arguments. For example, for me Christing Lagrande is far too close to Angela Merkel, the German Chancellor. Actually, Merkel brought the IMF into give economic backbone to the policies of the European Commission and the ECB, now known as the troika. Also the IMF played to German political interests in supporting the draconian Cyprus solution.

For me, the bias at the IMF is a far greater threat than forcasting errors.

Let me turn this to an open question:

 Why has the IMF not apologized to Cyprus for the damage done to the Cypriot economy by the troika?

Any thoughts?

mainly macro: The IMF apology nonsense: how to maintain a lie – Simon Wren-Lewis

English: Member nations of the International M...

English: Member nations of the International Monetary Fund (IMF). (Photo credit: Wikipedia)

This is a MUST-READ article by leading Oxford economist, Simon Wren-Lewis.

via mainly macro: The IMF apology nonsense: how to maintain a lie

Personally, I very much identify with the Wren-Lewis argument and conclusions.

The article examines three important spin myths put out by Cameron’s Government:

  1. The recession was somehow created by the previous government’s fiscal profligacy
  2. Cameron’s government had to “clean up the mess”, so austerity was inevitable
  3. The economic recovery, when it came, was a reward for austerity

The article then looked at how the government sponsored the idea with the media, taken up by the BBC, that the IMF had to apologize about getting the UK’s forecasts wrong and criticizing excessive austerity – all of this to deflect attention from the government’s risky Help to Buy policy.

It seriously worries me that the government’s risky economic policy has not been challenged more vigorously.

Let me turn this to an open question:

Is this evidence to support a Biderburg type conspiracy of the government, sectors of the UK media and the IMF?

Any thoughts?

 

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