Categories Uncategorized IMF Regional Economic Outlook: Europe Post author By Philip Lane Post date May 12, 2011 3 Comments on IMF Regional Economic Outlook: Europe The latest thinking from the IMF on the European situation is available here. Related ← Coalition strategy may give us safety net we need → WSJ interview with Patrick Honohan 3 replies on “IMF Regional Economic Outlook: Europe” Reading the conclusions I was struck by the similarity with respect to the funding of large-scale projects in the early days of development aid to countries with very low levels of economic and human well being. A completely inappropriate ‘econ’ model was applied. Just pour the money in – and damn the nature of the container! “It worked for us, so it will work for them”. Well, it didn’t. It was mostly, and quickly, spent on ‘consumption’ and ‘great works’ – not into long-term productive investment. Outcomes. Very poor. Remind you of anything recent? The authors seem obsessed (maybe that’s a bit strong) – blinkered, by some sort of econ idea that somehow or other ‘growth’ will deliver us all to the promised land. It may well do, but not exactly the land we expected. Anyone seen the film (aka movie) Apocalypto! That last scene. Those guys in the boats? They would’nt be the IMF team by any chance? I think a little bit of different thinking might be in order. Brian Snr. Do top-level decision makers ever learn. ‘Peers not. To complement the IMF tome the links to NC and CW give a more fine grained viewpoint. The links within the NC Links May/12/2011 flesh it out. http://www.nakedcapitalism.com/2011/05/links-51211.html http://www.creditwritedowns.com/2011/05/greece-euro-zone-thoughts.html Comparisons to California, Michigan, Illinois bring to our attention how widespread the problems are. Eurozone growth in Q1 at 0.8%, at double the US level. Sorry about the maybe positive news..?? However, Greece contracted 4.8% and Portugal by 0.7%. No Irish data. Comments are closed.