Voice of Electricity Workers April-June 2002 Index
IMF REPEATING ASIAN ERROR SAYS STIGLITZ
Nobel prize winning
economist Joseph Stiglitz today said the International Monetary Fund (IMF) was
repeating the mistakes it had made in East Asia, in Argentina, and would only
exacerbate the country's economic downturn.
In an interview during a
visit to Hanoi, the former World Bank chief economist said Argentina needed to
concentrate on expanding output rather than trying to convince financial markets
that its problems were solved.
The worry, at this juncture, should not
be inflation, the worry should the continuing high level of unemployment and the
social mess that it gives rise to," he said.
Stiglitz called the notion
that underlay the IMF strategy in Argentina-that if deficits could be got rid
of, investor confidence would be restored "a very risky strategy".
Their
continual use of contractionary policies that exacerbate economic downturns show
that they have failed to learn the lessons of east Asis.
Courtesy: Business
Standard 24th March, 2002
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