photo: telegraph UK
A new study shows that the IMF policies in the EU might not be in the best interest of the Euro group members.
The measures that the IMF has been pressing for include reduced spending, smaller government and cutting social programs over a very wide range of established platforms.
The problem with the policy first and foremost, is that it's a one-fits-all approach, which gives little regard to each country's economic diversity and condition.
There seems to be therefore, a drive to implement an agenda that has ideological implications, with very little regard for giving the population the type of assistance or assurance that is needed for those who are not wealthy. They also cause more poverty, a contraction of the economy and record levels of unemployment.
What some contend at this point, is that the IMF measures themselves might have precipitated or worsened the recessions experienced by many EU countries and that continuing to apply the same measures could only worsen the situation.
The measures also run contrary to some of the EU's most cherished policies of social inclusion, public investment on research and development and promotion of education and employment.
It is also noticeable that whatever the country's own economic and social goals, they must take a back seat to the IMF's recommended austerity measures.
And this could promote unrest and instability in countries that are already saddled with the burden of a crushing recession.
To make matters worse, the IMF just last week issued a statement on the projected growth of the Eurozone, deeming the euro area at risk of downside, and projecting a slight contraction.
This however, has not inspired the IMF to loosen its slack on the austerity measures imposed. They even reiterated how slacking on the austerity measures could slow the momentum for reform. This is hard pill to swallow for countries like Greece, where almost every penny they receive in increased taxation goes to repay only the interest on the bailout loan by the IMF and Germany.
A few observers have determined that the influence of the IMF and the measures they have imposed have been unnecessarily harmful for the people of Europe, who are suffering
through persistent unemployment and a recession to which an end is not in sight.
Source: cepr/4.17.13
The measures that the IMF has been pressing for include reduced spending, smaller government and cutting social programs over a very wide range of established platforms.
The problem with the policy first and foremost, is that it's a one-fits-all approach, which gives little regard to each country's economic diversity and condition.
There seems to be therefore, a drive to implement an agenda that has ideological implications, with very little regard for giving the population the type of assistance or assurance that is needed for those who are not wealthy. They also cause more poverty, a contraction of the economy and record levels of unemployment.
What some contend at this point, is that the IMF measures themselves might have precipitated or worsened the recessions experienced by many EU countries and that continuing to apply the same measures could only worsen the situation.
The measures also run contrary to some of the EU's most cherished policies of social inclusion, public investment on research and development and promotion of education and employment.
It is also noticeable that whatever the country's own economic and social goals, they must take a back seat to the IMF's recommended austerity measures.
And this could promote unrest and instability in countries that are already saddled with the burden of a crushing recession.
To make matters worse, the IMF just last week issued a statement on the projected growth of the Eurozone, deeming the euro area at risk of downside, and projecting a slight contraction.
This however, has not inspired the IMF to loosen its slack on the austerity measures imposed. They even reiterated how slacking on the austerity measures could slow the momentum for reform. This is hard pill to swallow for countries like Greece, where almost every penny they receive in increased taxation goes to repay only the interest on the bailout loan by the IMF and Germany.
A few observers have determined that the influence of the IMF and the measures they have imposed have been unnecessarily harmful for the people of Europe, who are suffering
through persistent unemployment and a recession to which an end is not in sight.
Source: cepr/4.17.13
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