Independent IMF unit examines trail of disaster – but what next?
It’s 3 weeks since the International Monetary Fund’s Independent Evaluation Office issued its alarming report on the crisis that occurred – and is still running – in Greece, and also in Ireland & Portugal.
But, now that the alarm has been raised, what next? The answer, I suspect, is: Report made, lesson espoused, move on without disturbing the furniture.
The IMF established the Independent Evaluation Office in 2001 to conduct independent & objective evaluations of fund policies & activities. Under its terms of reference, it’s fully independent of the management of the IMF and operates at arm’s length from the board of executive directors.
It was scathing in its assessment of how the fund acted on behalf of the euro currency, the European Union against one of its members and in favour of others, and in favour of lenders over a borrower.
You can click on the very long Independent Evaluation Office report below, but what reignited my interest today was a well constructed opinion piece by US economist John Mauldin on the history of the $US as a world reserve currency since President Richard Nixon called an end to the gold standard in 1971.
Mr Mauldin has plenty of detractors, but I think this piece captures the economic thread well, to this point. The issue is to see where that thread goes next.
John Mauldin, 13 August 2016: An inheritance of incompetence
Ambrose Evans-Pritchard, London Telegraph, 29 July 2016: IMF admits disastrous love affair with the euro and apologises for the immolation of Greece
IMF Independent Evaluation Office report, 28 July 2016: The IMF and the crises in Greece, Ireland & Portugal
Attribution: Mauldin Economics, Telegraph, IMF