Wall Street Journal (June 8)
The International Monetary Fund’s Acting Managing Director John Lipsky backs increasing the sales tax in Japan as early as next year. Lipsky believes not increasing taxes would be a “wasted opportunity.” The comments may “reflect international concerns that fiscal problems in the world’s third-largest economy would eventually hurt the global economy if left untreated–after debt crises in European economies of much smaller scale roiled the global market in recent years.”
The Economist (May 26)
Christine Lagarde is talented, but she should not be chosen to head the International Monetary Fund. “The stitch-up, whereby the head of the IMF is a European and the head of the World Bank is an American, is a disgrace. International posts should be filled according to merit…. Europe’s monopoly of the IMF’s leadership has long been an anomaly. It is time that it ended.”
Tags: Europe, IMF, Lagarde, U.S., World Bank
New York Times (May 20)
By a long-running understanding, the International Monetary Fund (IMF) has been headed by a European and the World Bank by an American. “That tradition…may have fairly reflected the economic geography of 1946. But it does not reflect today’s world, and powerful new players like China, India and Brazil rightly resent it.” In fact, the IMF has been led by French managing directors for 36 of its 65 years, with the remainder filled by other Europeans. The departure of Dominique Strauss-Kahn provides a chance to end the clubby understanding. Going forward, the posts should be filled “on merit alone.”
Tags: IMF, Managing Director, Nationality, Selection, Strauss-Kahn, World Bank
The Wall Street Journal (April 8)
Many have forgotten the “Lisbon Irony.” The 2000 EU summit was held in Portugal where European leaders unveiled the Lisbon Agenda “to transform the European economy into the world’s most ‘competitive and dynamic’ by 2010.” Instead, Portugal is now asking the EU and the IMF for a bailout. As the Journal notes, the Lisbon Agenda “didn’t turn out that way, least of all for Portugal.”
Many have forgotten the “Lisbon Irony.” The 2000 EU summit was held in Portugal where European leaders unveiled the Lisbon Agenda “to transform the European economy into the world’s most ‘competitive and dynamic’ by 2010.” Instead, Portugal is now asking the EU and the IMF for a bailout. As the Journal notes, the Lisbon Agenda “didn’t turn out that way, least of all for Portugal.”
Economist (October 7)
The International Monetary Fund’s latest forecast indicates global GDP expansion of 4.8%. The Economist points out averages are misleading. Emerging countries are racing along at rates closer to 10% while richer countries struggle with sluggish growth. For this reason, the Economist warns, “Emerging economies need to allow their currencies to rise more. The rich should tread carefully with fiscal consolidation: sensible budget repairs should be less about short-term deficit-slashing and more about lasting fiscal reforms, from raising pension ages to trimming health-care costs.”
Tags: Currencies, Fiscal reform, GDP, IMF
Telegraph (September 13)
“America and Europe face the worst jobs crisis since the 1930s.” Dominique Strauss-Kahn, head of the International Monetary Fund (IMF) warns that “the Great Recession has left behind a waste land of unemployment.” Approximately 30 million jobs were lost, 75% in developed economies. In the U.S., 50% of the unemployed have been seeking jobs for over 6 months, a situation last seen during the Great Depression.
Tags: Europe, Great Recession, IMF, U.S., Unemployment
The Independent (April 28)
Europe’s equivalent of the “sub-prime” is fast reaching a point of no return. Greece and Portugal both received new credit rating downgrades. The Independent urges the European Union (EU) and the International Monetary Fund (IMF) to “redouble their efforts” because “every day that a deal for Greece is not forthcoming is another day in which the eurozone’s crisis will spiral further out of control.” Each day increases the risk that more European countries will become “basket cases.”
Europe’s equivalent of the “sub-prime” is fast reaching a point of no return. Greece and Portugal both received new credit rating downgrades. The Independent urges the European Union (EU) and the International Monetary Fund (IMF) to “redouble their efforts” because “every day that a deal for Greece is not forthcoming is another day in which the eurozone’s crisis will spiral further out of control.” Each day increases the risk that more European countries will become “basket cases.”
Tags: Credit rating, EU, Europe, Greek crisis, IMF
