Joe Stiglitz may be warning about irrational exuberance in the markets right now, but the Washington-based think tank, Centre for Economic and Policy Research (CEPR), has their eye on the Kool aid the IMF was selling over the past couple years. A little over a week since the IMF gave themselves a pat on the back for a job well done during the crisis, the CEPR argues that, if anything, the IMF should be asking for forgiveness for making the situation worse.
In a paper analysing the IMF’s agreements with 41 borrowing countries during the crisis, the Washington-based Centre for Economic and Policy Research (CEPR) found that 31 of the agreements contained so-called “pro-cyclical” macroeconomic policies, which – in the face of a significant slowdown in growth or in a recession – would be expected to exacerbate the downturn.
“In many cases the fund’s pro-cyclical policies were based on over-optimistic assumptions about economic growth,” said the thinktank. This means the measures proposed were too restrictive for the countries involved and did not produce the longer-lasting economic growth predicted
But the potential future global lender of last resort is not going to take smack talk like that lying down. Whether you throw insults or shoes their way, the IMF stands tall.
In response to the findings, the IMF said: “The CEPR reaches seriously misleading conclusions about the pro-cyclicality of policies in IMF-supported programmes, relying on faulty analysis and often inaccurate information.
Misleading conclusions based on faulty analysis and inaccurate information you say? It’s probably not a coincidence they’re based in Washington.
IMF policies deepened financial crisis, says CEPR [Guardian.co.uk]
tldr
Greg,
I’m going to invite you to go trick-or-treating this Halloween, tell you we’re going as “Where the Wild Things Are,” and not allow you to dress as Max. I’ll then force you to carve 13 pumpkins, while supplying you with stencils and banning your creativity, à la Pol Pot.
- Jeff Macke
IMF what-now?
Too programme; didn’t colour
Greg,
I’m going to make you grilled-cheese sandwiches using I Can’t Believe It’s Not Butter. But! You will believe it’s not butter after one bite.
- Martha Stewart
Greg, I’m going to strangle you with Cody Willard’s ironic bolo tie.
-Jeff Macke
Greg, what the fuck? Whenever you improve a little bit, you fall right back off the wagon again. I’m going to make one attempt here:
You. Are. A. Blogger. You work with one of the best. Learn from her. Learn your audience. Learn to tag your fucking posts. Learn to use pictures effectively (it scares me that this is one of your best). Have some fucking fun.