IMF: European banks emergency asset sale accelerates

European banks are in the midst of an emergency firesale of assets worth more than €10,000 (£8,000) for every single household in the continent, it has emerged. The warning from the International Monetary Fund came 24 hours after it slashed its growth forecast for Britain’s economy by more than any other major developed country. It said that political leaders – especially those in the Eurozone – are running out of time … Continue Reading ››

IMF: We All Underestimated The Pain of the Cuts

What if the fundamental assumptions upon which we’ve based our economic plans were flawed? What if Britain’s fiscal plan – the “plan A” we hear so much about – was predicated on an economic model which vastly underestimated the crippling economic impact of austerity? Those are the questions buried away in the International Monetary Fund’s World Economic Outlook report. For while most of the attention over the WEO has been … Continue Reading ››

IMF’s unwavering confidence in Plan A

A year ago, the International Monetary Fund said that Britain should only reconsider its fiscal plan if GDP was significantly worse than its forecast. At that point it was projecting economic growth of 2.3%. Roll on to today and the Fund has slashed its forecast for the UK economy down to -0.4%. Most economists would consider that significantly worse than was previously being forecast; but the IMF's verdict? That, once again, … Continue Reading ››