83. IMF as example of financial focus
May 1, 2009 § Leave a comment
Here we have an organization that is supposed to protect the world economy (look at mission statement), but takes, without much awareness, the point of view of financial institutions. The first sentences of the Executive summary read
With ﬁnancial markets worldwide facing growing turmoil, internationally coherent and decisive policy measures will be required to restore conﬁdence in the global ﬁnancial system. Failure to do so could usher in a period in which the ongoing deleveraging process becomes increasingly disorderly and costly for the real economy.
Note that the real economy is made to be dependent on putting financince back where it was.
The mystification continues with
One result has been sudden failures of institutions as markets have become unwilling (or unable) to provide capital and funding or absorb assets.
The point here is to blame markets, not institutions or powerful people. Markets in a ways stands for the open system, democracy, the people, who are here seen s failing when really it is the unwillingness of people with money to risk putting money into bad assets (especially when they might be able to get government guarantees down the road.
The narrow focus is on finance.
Restoration of ﬁnancial stability would now benefit from a publicly-stated collective commitment by the authorities of the affected countries to address the issue in a consistent and coherent manner.