So even the IMF chief Christine Lagarde is warning Osborne to get a plan B?

Question by Just for Laughs: So even the IMF chief Christine Lagarde is warning Osborne to get a plan B?
IMF chief Christine Lagarde warned the Chancellor slashing public services and his determination to rapidly reduce the national debt could have a catastrophic effect on recovery, growth and jobs.

so why won’t he listen?

It takes a big man to admit I got it wrong and do something about it.

Best answer:

Answer by Five Times
Any advice given by the IMF should be ignored, it’s dangerous.

Add your own answer in the comments!

3 thoughts on “So even the IMF chief Christine Lagarde is warning Osborne to get a plan B?

  1. Sooner of later, I think they’ll have to reconsider some elements of their deficit reduction plan, in order to mitigate the rate to which jobs and services are being cut.

    It will be funny to see how they are reacting to this. Only months ago, were they boasting on their party website of the IMF’s support for their budgetary reduction plan.

    Sorry Osborne, but the weather will no longer save you in searching for excuses.

  2. Sorry, Mr Balls, but without being funny, that’s not what she said at all:

    From the Telegraph: “Christine Lagarde said the UK government’s stance remained “appropriate” at the Chatham House think tank in London on Friday.”

    And anyway, just because Lagarde said it does not mean it’s gospel. She’s the new head of the IMF, which doesn’t mean she knows any better than any other economist.

    Mac, your padding out the quote doesn’t really do anything to change the meaning. She said the government should remain “nimble”. That doesn’t mean “the government should perform a complete about-face and go againt the commonly-held principles of economic thought”, it means exactly what she says.

    The problem with the left in general is that they recognise only one of the economic crises facing the country. Yes, there is a problem with recovering from the recession and having to ensure growth. This is a medium- to long-term problem. Far more immediate is the problem of the dangerously high deficit, which you apparently don’t recognise. This is a problem which, as is evidenced by the downgrade of the US credit rating, needs to be sorted out NOW. A solution that might work in 5 years, is not good enough. Ask Italy.

  3. Your Grandad seems to like picking little pieces of things that were said, but not finishing the whole paragraph. You are clearly right, she did warn Osborne to get a plan B which is plain to see from what she said below:

    “The policy path was premised on a greater role for private sector demand, especially a robust recovery in exports, to take over as the public sector retrenches. But since the summer, the outlook has become more subdued, including in the rest of Europe and the United States, the UK’s major trading partners. So risk levels are rising. The policy stance remains appropriate, but this heightened risk means a heightened readiness to respond, particularly if it looks like the economy is headed for a prolonged period of weak growth and high unemployment.”

    Well weak growth and higher unemployment have been forecast, so Georgie Boy needs to pull his head out of the sand, admit his policies aren’t working and start doing something to create jobs and help the economy. Better still, the PM needs to sack him as he’s clearly not up to the job.

    your Grandad, with the greatest respect, this piece of the article: “this heightened risk means a heightened readiness to respond, particularly if it looks like the economy is headed for a prolonged period of weak growth and high unemployment.” reads to me as a clear warning that Osborne should have a plan B as we are looking at high unemployment and a very very very weak recovery. She is telling Osborne that his plan isn’t working as the private sector hasn’t picked up the slack from the private sector.

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