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| Link to The Independent |
"I noted
at the turn of the year that the IMF, since Christine Lagarde took
over, had made it more and more obvious that it thought a number of
countries including the US, Germany and (by implication) the UK, were
tightening fiscal policy too fast.
"... the Fund wants us, for standard Keynesian reasons, to spend more on
infrastructure (and housing) and increase welfare benefits for poor
people (who will spend them), and pay with it by taxing the rich (those
with a lower 'marginal propensity to consume'. This would raise demand
in the short term, without worsening the fiscal position.
"For those who
see the Fund as being both anti-Keynesian on macroeconomic policy, and
classically 'liberal' on microeconomic policy, this will come as
something as a shock."
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