ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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IMF: An Inefficient Watchdog

The IMF is indicted for its silence during the build-up to the global crisis, but will anything change?

The Independent Evaluation Office (IEO) of the International dog of the global economy – a function referred to as “IMF sur-Monetary Fund (IMF) has indicted the Washington-based veillance”. In the run-up to the crisis, the IMF not only failed to multilateral institution for its inability to warn of the perform this function, from the vantage point of 2011, it seems as build-up to the global economic crisis. After all, the IMF, apart if it was also complicit with those responsible for the crisis.

The IEO report, IMF Performance in the Run-up to the Financial and Economic Crisis: IMF Surveillance in 2004-07, which has just been released, has made a scathing critique of the IMF’s surveillance: “IMF provided few clear warnings about the risks and v ulnerabilities associated with the impending crisis before its outbreak. The banner message was one of continued optimism after more than a decade of benign economic conditions and low macroeconomic volatility. …The belief that financial markets were fundamentally sound and that large financial institutions could weather any likely problem lessened the sense of urgency to address risks or to worry about possible severe adverse boutcomes” (p v).

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