Economics
Kinder, Gentler IMF Austerity Stance Came Too Late to Aid Greece
This article is for subscribers only.
A growing recognition by IMF economists since the global financial crisis of the dangers of imposing too much austerity on cash-starved countries may have come too late to help the fund’s biggest client: Greece.
From 2008 to 2013, the International Monetary Fund became more accepting of fiscal measures to aid expansion around the world and began to recommend nations with limited room for stimulus make a more-gradual return to budget surpluses, according to a 2014 analysis of IMF research by Cornel Ban, an international-relations professor at Boston University.