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Athens Macedonian News Agency: News in English, 13-12-11

Athens News Agency: News in English Directory - Previous Article - Next Article

From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

  • [01] Lagarde: IMF's admission of error "a matter of honour"

  • [01] Lagarde: IMF's admission of error "a matter of honour"

    ANA-MPA -- Managing director of the International Monetary Fund (IMF) Christine Lagarde said on Tuesday that it was a "matter of honour" for the IMF to acknowledge its forecast error on the fiscal multipliers in the case of Greece and other eurozone member states.

    Addressing the European Economic and Social Committee in Brussels, Lagarde clarified that even in the case that the specific error had been promptly discovered, the IMF's policy recommendations to Greece would have been the same, but expanded over time.

    The IMF head explained that the error with the multipliers was that the impact of the austerity policies implemented in Greece and other eurozone member states was incorrectly calculated in relation to the extent of Greece's economic recession.

    And, she attributed the error to lack in related expertise in the global economic scene.

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