HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » The IMF Admits It Was Wro...
Introducing Discussionist: A new forum by the creators of DU

Mon Jan 7, 2013, 06:10 PM

The IMF Admits It Was Wrong About Keynesianism

http://www.businessinsider.com/imf-admitted-their-economists-were-wrong-2013-1



"In an important new study, Olivier Blanchard, the Chief Economist at the International Monetary Fund (IMF), has just admitted that having respected and accepted the advice of conservative economists has turned out to be a blunder."


"The new “IMF Working Paper,” titled “Growth Forecast Errors and Fiscal Multipliers,” prepared by Blanchard and Daniel Leigh of their Research Department, reports that whereas the IMF had been accepting conservative economists’ estimates that the multiplier was “about 0.5” percent growth, the “actual multipliers were substantially above 1 early in the crisis,” which was the period when the IMF was recommending and pursuing “fiscal consolidation,” which is called in the United States “austerity.”

In other words, the policy recommended by the Republican Party’s economists, and which has actually been tried especially in Europe, has failed miserably."



"Here in the U.S., a similar recent study was done by the research arm of the U.S. Congress. That study covered only the U.S. economy, and it focused like a laser on only U.S. economic history. The specific question it examined was whether economic growth has been spurred in the United States by cutting taxes for the rich and introducing austerity for the nation-as-a-whole by the Federal Government, or whether such economic policies have failed to generate economic growth in this country.

It found that they have failed."




There's an interesting book linked to at the end of the article. I haven't read it but I put it on my reading list.

"They're Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010"
http://www.amazon.com/Theyre-Not-Even-Close-Democratic/dp/1880026090/ref=sr_1_9?ie=UTF8&qid=1339027537&sr=8-9



22 replies, 2361 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 22 replies Author Time Post
Reply The IMF Admits It Was Wrong About Keynesianism (Original post)
zeos3 Jan 2013 OP
jwirr Jan 2013 #1
malaise Jan 2013 #9
gollygee Jan 2013 #2
zeos3 Jan 2013 #5
Scootaloo Jan 2013 #3
meow2u3 Jan 2013 #4
Agony Jan 2013 #6
Sherman A1 Jan 2013 #7
Mockingjay Jan 2013 #8
WillyT Jan 2013 #10
pangaia Jan 2013 #11
Squinch Jan 2013 #12
RedCappedBandit Jan 2013 #13
pangaia Jan 2013 #14
RedCappedBandit Jan 2013 #16
ReRe Jan 2013 #15
drm604 Jan 2013 #17
burrowowl Jan 2013 #18
grahamhgreen Jan 2013 #19
Selatius Jan 2013 #20
pangaia Jan 2013 #21
CJCRANE Jan 2013 #22

Response to zeos3 (Original post)

Mon Jan 7, 2013, 06:24 PM

1. So many broken dreams all over the world shot to hell by the Chicago Boys and Friedman.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to jwirr (Reply #1)

Mon Jan 7, 2013, 08:25 PM

9. Tell me about it

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 06:28 PM

2. This is really big

Am I going to see this on major news networks? Or will this be the only place I read it? Sigh.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to gollygee (Reply #2)

Mon Jan 7, 2013, 07:05 PM

5. We'll Be Seeing This EVERYWHERE...SOON...

Sorry about the sarcasm...sigh...

Here's another bit from the same article about a similar study here in the US from the Congressional Research Service that was ignored even though it came out before the last election:


"Months of silence on this shattering news were finally broken a few months later, late enough so that it couldn’t affect the election-results. Then, on November 2nd, The New York Times headlined, with perhaps intentional dullness (so as to help assure that the matter would stay out of the political debate), “Nonpartisan Tax Report Withdrawn After G.O.P. Protest.”"

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 06:56 PM

3. And they will be forgiving debts and paying reparations, right?

Right? Hello? Anyone? Anyone at all?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 07:01 PM

4. YOUSE JUST FOUND OUT?!!!

We've known this all along that trickle down simply means that the rich get a golden parachute and give the rest of us a golden shower.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 07:29 PM

6. ...


mmmmmmm! beer!

maybe somebody will notice this?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 07:59 PM

7. K&R

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 08:21 PM

8. That's good news for the truth, but

How many years will it take for the MSM, Fox News and the Dumbass out there to hear it, read it and comprehend it? Just asking because we new this already?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 08:26 PM

10. HUGE K & R !!!


Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 08:44 PM

11. If I had this figured out, oh. what... 25-30 years ago?

And I'm a musician, not an economist....
Why couldn't the IMF figure it out? SHOCK DOCTRINE That's why !

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 08:54 PM

12. Better late than never, but Jeez. Couldn't they have looked at the numbers a little earlier?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 08:57 PM

13. I just started reading Shock Doctrine a few days ago.

What crazy timing.

As an aside, very enlightening book.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to RedCappedBandit (Reply #13)

Mon Jan 7, 2013, 09:11 PM

14. Isn't that strange.,

I had read parts of it several months ago.. Then it got too... depressing...
Then started again a few nights ago, after finishing R.A Dickey's great book about life as a knuckleballer...
Jumped around and last night read all that horrifying info on Rumsfeld, Cheney and Bush.
So THAT explains it. :>)
Believe me, if you end the day in a good mood.. don't even go there...
Have some bourbon or whatever...

Then today I see this.. which i also missed in November. Wonder why???

Reply to this post

Back to top Alert abuse Link here Permalink


Response to pangaia (Reply #14)

Mon Jan 7, 2013, 11:40 PM

16. I know exactly what you mean.

The book is hard to stomach. Literally had nightmares about torture. Worth it though.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Mon Jan 7, 2013, 09:14 PM

15. "The IMF Admits It Was Wrong"

Holly Cow, this is explosive. Now what? Now that the globe has been laid to waste all over the place? "Oops, we were wrong! We promise to not do anything so rash again." Oh, OK. Wait... is this going to change the IMF as we know it? I never did like what they did all over the world in the first place. And the offices of the IMF are located where? And what Dept or Agency do they fall under? The Federal Reserve or the Treasury? I guess that book referenced in your OP would be a good place to start. Thanks so much for this post, zeos3

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Tue Jan 8, 2013, 01:12 AM

17. Now we'll see if they change their behavior in any way.

I have my doubts, but we can hope.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Tue Jan 8, 2013, 01:15 AM

18. K&R

No kidding!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Tue Jan 8, 2013, 04:42 AM

19. Kick

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Tue Jan 8, 2013, 04:59 AM

20. One thing is for sure. The people of France and Iceland didn't put up with this shit.

Iceland let their bankers burn, and the French kicked out Sarkozy and put in a Socialist Party-led government.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Tue Jan 8, 2013, 09:22 AM

21. This should be one of the longest threads in Du history !!

How can we get this all over the world???

Reply to this post

Back to top Alert abuse Link here Permalink


Response to zeos3 (Original post)

Tue Jan 8, 2013, 03:39 PM

22. K&R.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread