The Tories have got IMF cover for their plan to borrow and spend
by Larry Elliott from Economics | The Guardian on (#4SKAY)
The Fund's latest forecast accepts that financing public debt is easier when borrowing is cheap
"IMF warns there is 'limited ammunition' to fight recession
The International Monetary Fund has been on quite a journey these past 10 years. From being a cheerleader for austerity, it is now telling countries that low interest and negligible inflationary pressure mean they can borrow and spend.
Up to a point. Old habits die hard, and the advice doled out by the IMF's research team is not always followed on the ground by the hit squads sent in to sort out the economic problems of countries in trouble. Nobody in Argentina or Ecuador thinks the IMF has gone soft on fiscal policy.
Related: IMF warns there is 'limited ammunition' to fight recession
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