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?