Before anyone gets worried about the IMF’s Fiscal Monitor report’s questioning of the UK’s economic strategy, they should first view this clip of the IMF head Christine Lagarde in action at a Eurogroup conference:
Just after 3:30 minutes on the clip a journalist from the Irish Examiner asks Madame Lagarde about the IMF’s World Economic Outlook study which shows that IMF and EU Commission economic growth forecast are consistently too optimistic and that they are underestimating the negative effect on investment, economic growth and employment from fiscal consolidation aka the necessary and unavoidable debt and deficit reduction. Lagarde’s reaction and response has to be seen to be believed.
What is clear from Madame Lagarde’s response is that a) she has not read this report; b) she has not even heard of it; c) she has no idea what it means; and d) she regards the rather better informed Irish journalist like something nasty she had stepped in.
Be in no doubt: the IMF is now a political organisation marching in lock step with the Eurozone and had no regard for the facts, the correct course of action or any pesky questioning of its policies.