Chief economist Oliver Blanchard on the IMF’s latest forecast.
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- IMF revises forecast down, global growth projected at 3.3 percent this year
- World trade slumps, hurting emerging markets, developing countries
- Prospects could improve if clouds over euro area, U.S. “fiscal cliff” are lifted
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So the IMF’s solution is to pump in more money. It seems to me we need to figure out why the hundreds of trillions of dollars that already exists is not circulating as it was designed to do.
The money is not circulating because the central banks are rubbish at designing anything to do with money. All price fixing ( ie interest rate setting) and money printing results in the most dire unintended consequences- eventually.
Why should you give more cash to anyone who has a reputation for losing it?