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View Diary: Republicans on Super Congress don't want to hear what CBO is telling them on jobs, austerity (28 comments)

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  •  Developed vs. Developing (0+ / 0-)

    The criticism of the IMF was that developed countries (i.e., U.S. & Europe) must not get too bogged down in austerity because they drive the growth for the rest of the world.

    On the other hand, the IMF loans money to developing countries that have little to offer in creating world-wide demand.  The austerity that the IMF requests is in conjunction with loan guarantees to these developing countries.

    There is a big difference in the importance of the combined $28 trillion economies of U.S. & Europe and the combined $30 trillion GDP for the rest of the world.  In the absence of demand from the U.S. & Europe, it is difficult for the rest of the world to grow.

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