IMF Does Not Like Economy’s Chances

Posted: July 9, 2008 at 6:03 am

The IMF seems to think that the global economy is going to go badly this year and worse next.

According to Reuters, "With sky-high food and oil prices adding to the economic pain caused by financial strains, Strauss-Kahn said the IMF was fairly pessimistic about global growth prospects this year and, especially, in 2009."

Concerns are that inflation is the real villain. The head of the agency said, "In developed countries, central banks have taken it into account and have the correct monetary policy stance. In emerging countries and some low-income countries, in some of them at least, inflation is out of control. That means monetary policy probably has to be tightened in coming weeks or coming months."

Douglas A. McIntyre

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