Mark Weisbrot — The International Monetary Fund’s world economic outlook in theory and practice

The International Monetary Fund (IMF) released its biannual “World Economic Outlook” (WEO) today, presenting a 300-page overview of the world economy and where it might be going. The Fund is one of the most powerful and influential financial institutions in the world. Despite the fact that this flagship publication, and the Fund’s hundreds of PhD economists, missed the two biggest asset bubbles in US and world history (the stock market bubble in the late 1990s and the housing bubble that triggered the Great Recession), the WEO is taken very seriously and contains much valuable data and analysis. 

The fall WEO is relatively upbeat for the world economy in the short run but is more worried about downside risks in the medium term. It lists a number of concerns that anyone who cares about social or economic justice, or progress, would be concerned with, such as:

The analysis is out of paradigm with MMT, but the post is interesting from the point of view of what the IMF is concerned about. Apparently, the top is getting somewhat jittery about rising social dysfunction and increasing political dissatisfaction.

Real-World Economics Review Blog
The International Monetary Fund’s world economic outlook in theory and practice

Mark Weisbrot | Co-Director with Dean Baker of the Center for Economic and Policy Research in Washington, D.C.