SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
IMF Managing Director Christine Lagarde holds a press conference October 11, 2012 at the Tokyo International Forum in Toyko, Japan. (IMF Staff Photograph/Stephen Jaffe)
The draconian austerity measures issued to debt-stricken countries should be eased, the head of the International Monetary Fund admitted on Thursday, marking a shift in the policies the "troika" member has been pushing.
Speaking in Tokyo at the annual IMF/World Bank meetings, IMF managing director Christine Lagarde said, "What we have observed is that when many countries at the same time adopt the same austerity measures, it creates a bigger and deeper impact on growth."
Sometimes it's better to "go a little bit more slowly" in implementing the measures, and countries should "let the automatic stabilizers operate," Lagarde stated.
The Telegraphexplains further that Lagarde's emphasis is now not on "specific debt reduction targets but focus on implementing reforms."
Lagarde's statements come days after the IMF issued its World Economic Outlook. Reutersreports:
The IMF released new research this week showing that fiscal consolidation has a much sharper negative effect on growth than previously thought. Since the global financial crisis, these so-called fiscal multipliers have been as much as three times larger than they were before 2009, the IMF research shows.
That means aggressive austerity measures may inflict deep economic wounds that make it harder for an economy to get out from under heavy debt burdens.
Financial observer Yves Smith remarks that the IMF now recognizing the failure of these policies is "too little, too late," and "is tantamount to loosening a tourniquet once gangrene has set in."
* * *
The IMF's Christine Lagarde spoke with CNN, explaining the Troika's review of the austerity plan.
IMF chief: Austerity is hurting growth
Donald Trump’s attacks on democracy, justice, and a free press are escalating — putting everything we stand for at risk. We believe a better world is possible, but we can’t get there without your commitment. Common Dreams stands apart. We answer only to you — our readers, activists, and changemakers — not to billionaires or corporations. Our independence allows us to cover the vital stories that others won’t, spotlighting movements for peace, equality, and human rights. Right now, our work faces unprecedented challenges. Misinformation is spreading, journalists are under attack, and financial pressures are mounting. As a reader-supported, nonprofit newsroom, your support is crucial to keep this journalism alive. While every gift matters and makes a powerful difference, it gives us the stability to invest confidently in in-depth, fearless reporting — the kind of journalism that holds power accountable and fuels real change. Whatever you can give — $10, $25, or $100 — your steady support helps us stay strong and responsive when the world needs us most. Together, we’ll continue to build the independent, courageous journalism our movement relies on. Thank you for being part of this community. |
The draconian austerity measures issued to debt-stricken countries should be eased, the head of the International Monetary Fund admitted on Thursday, marking a shift in the policies the "troika" member has been pushing.
Speaking in Tokyo at the annual IMF/World Bank meetings, IMF managing director Christine Lagarde said, "What we have observed is that when many countries at the same time adopt the same austerity measures, it creates a bigger and deeper impact on growth."
Sometimes it's better to "go a little bit more slowly" in implementing the measures, and countries should "let the automatic stabilizers operate," Lagarde stated.
The Telegraphexplains further that Lagarde's emphasis is now not on "specific debt reduction targets but focus on implementing reforms."
Lagarde's statements come days after the IMF issued its World Economic Outlook. Reutersreports:
The IMF released new research this week showing that fiscal consolidation has a much sharper negative effect on growth than previously thought. Since the global financial crisis, these so-called fiscal multipliers have been as much as three times larger than they were before 2009, the IMF research shows.
That means aggressive austerity measures may inflict deep economic wounds that make it harder for an economy to get out from under heavy debt burdens.
Financial observer Yves Smith remarks that the IMF now recognizing the failure of these policies is "too little, too late," and "is tantamount to loosening a tourniquet once gangrene has set in."
* * *
The IMF's Christine Lagarde spoke with CNN, explaining the Troika's review of the austerity plan.
IMF chief: Austerity is hurting growth
The draconian austerity measures issued to debt-stricken countries should be eased, the head of the International Monetary Fund admitted on Thursday, marking a shift in the policies the "troika" member has been pushing.
Speaking in Tokyo at the annual IMF/World Bank meetings, IMF managing director Christine Lagarde said, "What we have observed is that when many countries at the same time adopt the same austerity measures, it creates a bigger and deeper impact on growth."
Sometimes it's better to "go a little bit more slowly" in implementing the measures, and countries should "let the automatic stabilizers operate," Lagarde stated.
The Telegraphexplains further that Lagarde's emphasis is now not on "specific debt reduction targets but focus on implementing reforms."
Lagarde's statements come days after the IMF issued its World Economic Outlook. Reutersreports:
The IMF released new research this week showing that fiscal consolidation has a much sharper negative effect on growth than previously thought. Since the global financial crisis, these so-called fiscal multipliers have been as much as three times larger than they were before 2009, the IMF research shows.
That means aggressive austerity measures may inflict deep economic wounds that make it harder for an economy to get out from under heavy debt burdens.
Financial observer Yves Smith remarks that the IMF now recognizing the failure of these policies is "too little, too late," and "is tantamount to loosening a tourniquet once gangrene has set in."
* * *
The IMF's Christine Lagarde spoke with CNN, explaining the Troika's review of the austerity plan.
IMF chief: Austerity is hurting growth