Pages

Sunday, June 3, 2012

Which is Better Medicine for Ailing Nations: Austerity or Injection of More Money?

Social and political criticisms

                          
                                 Anti IMF protests


The old medicine by IMF for borrower countries which had difficulties were:  belt tightening, austerity, strict tax collection tax increases.  This did not earn IMF friends. Only and mostly foes.  Most riots and demos were vs. IMF

                              

                                

                         
                                          IMF Headquarters in the US

Lately there has been a change of tack:  more money, more loans.  In US they printed more money in 20ll ($l.3 trillion) zero or lower interest rate from the FED (tha is taking Keynesian theory to the max.  Has this been effective for  the US?  Has US recovered.?

Which one do you think works?  The old IMF fasting medicine, or  the feasting regimen?