The IMF Could Not See the Housing Bubble That Wrecked the Economy, Wants Countries to Reduce their Deficits More Quickly

Print

The Washington Post thought it was important to tell readers that the IMF thought that deficit reduction plans in many countries are inadequate because these countries were overly optimistic in their growth projections:

"in its recent review, the IMF warned that governments were relying on optimistic assumptions about economic growth and had not yet specified adequate cuts in spending to control their finances."

 

It would have been worth reminding readers that the IMF managed to overlook the housing bubbles in the United States, Spain, Ireland and other countries that led to the current economic crisis. In fact, if IMF economists were held to the same standard of accountability as ordinary workers, the vast majority of them would be among the 15 million unemployed. If readers were aware of the quality of the economic work produced by the IMF they would probably not give its concerns much credence.