Tag Archives: IMF

IMF Says U.K. Can’t Afford 2010 Stimulus

Posted on by


[Skip to the end]

This says a lot more about the IMF than the UK:

IMF Says U.K. Can’t Afford 2010 Stimulus, Telegraph Reports

The U.K. is alone with Argentina as the only members of the Group of 20 that cannot budget for temporary spending increases next year to aid economic growth, the Sunday Telegraph cited the International Monetary Fund as saying. The Washington-based fund presented a paper at a G-20 meeting in Basel saying the average fiscal stimulus among member countries will be 1.6 % next year, the Telegraph reported. Britain’s fiscal position has left it unable to budget for an increase in expenditure or tax cuts in 2010 to boost the economy, the Telegraph cited the IMF as saying.


[top]

Share

ECB Official Raps IMF’s ‘Helicopter Money’

Posted on by


[Skip to the end]

He’s right on this point. Functionally it is fiscal expansion, though not all that much as a percentage of world GDP.

The question is whether I’s warranted to support demand and how to decide which nations should get it:

ECB’s Stark raps move to boost IMF drawing rights

by Marc Jones

April 7 (International Business Times) — European Central Bank Executive Board member Juergen Stark was quoted on Tuesday as criticizing decisions made at the G20 summit to boost the IMF’s Special Drawing Rights (SDRs).

Stark suggested in a newspaper article that the decision was potentially inflationary as it would create “helicopter money” and that it had not been properly thought out.

Last week leaders from the Group of 20 wealthy and emerging economies agreed to support a general allocation of $250 billion worth of International Monetary Fund’s SDRs alongside other measures to boost the Fund’s firepower.

Countries hit particularly hard by the global economic crisis would be allowed to increase their SDR share by using those of another country which may not need them.

The results of the G20 summit have been broadly welcomed by policymakers by Stark questioned whether this decision was needed.

“That is pure money creation. That is helicopter money for the globe,” he was quoted as saying in an article in German business daily Handelsblatt.

“There was no examination of whether there is a global need for additional liquidity at all… One used to take a lot of time to examine something like this,” he said.


[top]

Share

IMF statement

Posted on by


[Skip to the end]

“Ten days ago, the IMF cut its world-growth estimate for this year to 0.5 percent, the weakest pace since World War II. Stimulus packages alone won’t succeed in dragging the global economy out of recession unless confidence is restored in the banking system, Strauss-Kahn said today.”

I do not agree.

An ongoing fiscal adjustment alone can easily do the trick.

The banking system is functioning well enough (clearing checks and making only the loans it feels are attractive on a risk adjusted basis) to support a full blown economic boom should the government get the fiscal right.

>   
>   Warren:
>   
>   Have you seen this analysis by the IMF. Tell me that they are clueless. My
>   analysis is that they may be on the money.
>   

IMF Says Advanced Economies Already in Depression

by Angus Whitley and Shamim Adam

Feb 7 (Bloomberg)


[top]

Share

IMF warns of ‘disturbing’ UK debt

Posted on by


[Skip to the end]

IMF warns of ‘disturbing’ UK debt

The level of debt in the UK is “disturbing,” the head of the International Monetary Fund has said.

But Dominique Strauss-Kahn told the BBC that given the severity of the economic downturn, more government borrowing was the lesser of two evils.

No, he’s the greater evil. Another deficit terrorist.


[top]

Share

IMF Ukraine loan and conditions counterproductive

Posted on by


[Skip to the end]

UPDATE 3-IMF, Ukraine agree $16.5 bln loan with conditions

By Sabina Zawadzki and Lesley Wroughton

KIEV/WASHINGTON, Oct 26 (Reuters) – The International Monetary Fund and Ukraine said on Sunday they had reached an agreement in principle for a $16.5 billion loan package to ease the effects of the global financial crisis.

But analysts said politicians would have to set aside differences to adopt a set of financial measures needed to clinch the deal and secure the loan.

The IMF statement said nothing about the conditions it sought from Ukraine. But a joint central bank and finance ministry statement said the government would have to draw up a balanced budget and introduce measures to support banks.


[top]

Share