IMF Urges Europe to Back Off on Austerity

[eridani]

http://readersupportednews.org/news-section2/320-80/13925-imf-urges-europe-to-back-off-on-austerity

Speaking just days after the IMF slashed its global growth forecasts for both this year and next, Ms Lagarde said the economic weakness was not just a result of "tail risks" such as a eurozone break-up but "the degree of uncertainty in many corners of the world – whether it is Europe or America".

"It is deterring investors from investing and creating jobs," she said. "We need action to lift the veil of uncertainty."

She also reiterated the softening of the IMF's position on austerity, saying that governments should no longer pursue specific debt reduction targets but focus on implementing reforms.

If borrowing rises as a direct result of growth-sapping measures, the IMF now thinks it should be tolerated rather than addressed with even more tax rises or spending cuts. "We don't think it's sensible to stick to nominal targets. We think it's much more sensible to apply measures and let the stabilisers operate," she said.

[Vincardog]

1. This is the right action for the wrong reason. Job "creators" create jobs in response to DEMAND.

The economic royals would not hire anybody unless they could see a profit to be made from employing them.
This trickle down shit has to stop, RayGun was a VOODOO economist.