Responsding IMF reviews of macro policy framework

Comments on “IMF Draws Lessons from the Crisis, Reviews Macro Policy Framework”, 12/02/2010, by iMFdirect, http://blog-imfdirect.imf.org/2010/02/12/imf-draws-lessons-from-the-crisis-reviews-macro-policy-framework/

IMF has got its policy recommendations wrong so many times, especially in relation to crises, re the Asian financial crisis and the recent financial and economic ones.

Now IMF is talking nonsense again in that paper!

For one thing, countries are different in so many ways and as a result, different macroeconomic settings are required for different circumstances. Why is IMF advocating an approach of one-size-fits-all to inflation targets? It just lacks common sense!

Second, there are other macro policy instruments that can be used in case of the so-called liquidity trap or zero or near zero official interest rate. Why introducing additional costs unnecessarily as a means to deal with a situation that can be better dealt with using other means?

Has IMF considered any cost-benefit effects of the costs of permanently higher inflation and the potential benefits in the context that there are other policy tools available?

IMF has been out of touch with reality and is now even more out of touch.

It appears to be a panic response to its past failures in policy recommendations.

That will not improve but further harm its standing.

One has to wonder what is the use for such an ineffectual and harmful international organisation that is funded by world taxpayers.