Home > Uncategorized > IMF backs away from neoliberalism?

IMF backs away from neoliberalism?

from Asad Zaman
austerity

The IMF has been among the principal architects, executors and enforcers of the neoliberal agenda all over the globe for several decades. This is why an IMF publication with an article entitled “Neoliberalism: Oversold?” is as surprising as an ISIS article entitled “Violence: Oversold?” would be. Has neoliberalism become so unpopular that even the IMF does not want to be associated with it? In this essay, we study the lessons that the IMF claims to have learnt from experience with its single-minded drive to enforce the neoliberal agenda throughout the globe.

The article by Ostry, Loungani, and Furceri, starts out by praising the neoliberal agenda for getting many things right. The authors write that they will confine their critique to two aspects. The first is capital account liberalisation, which means freely allowing capital flows across national borders. The second is “austerity”, which requires tight control of budget deficits, raising taxes, lowering expenses and making borrowing costly for the government.  read more

  1. September 6, 2016 at 2:42 pm

    I think your ending, comparing the active and retirement views of US cavalry officers on the Western frontiers on what they were doing for or against native Americans, is insightful. “George Orwell” had a similar experience as a colonial officer in India.

    Let’s add this editorial by Martin Wolf of the Financial Times as in the same genre of the IMF article cited here: http://www.ft.com/cms/s/0/e46e8c00-6b72-11e6-ae5b-a7cc5dd5a28c.html#axzz4JOE0gldS “Capitalism and Democracy: the Strain is Showing.”

    Wolf is beginning to sound like Yanis Varoufakis. I think that’s a good thing.

    Wolf seems to me to be serveral steps, maybe a league, ahead of Mrs. Clinton in his views of trouble ahead.

  2. Paul Davidson
    September 6, 2016 at 4:19 pm

    my latest book POST KEYNESIAN THEORY AND POLICY explains in detail how Keynes’s general theory leads to policies which require governments to maintain the possibility of international capital flow controls — and when to use such controls as well as why austerity is not part of Post Keynesian theory or policy!! I is a must read for all those students in macroeconomic theory courses.
    Paul Davidson

  3. C-R D
    September 6, 2016 at 4:53 pm

    That is what many of us have been saying for the last 16 years. The IMF is just one down. Let’s see how long it will take for the ECB to learn that lesson.

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