Before the crisis, Spain’s financial system passed the International Monetary Fund (IMF) stress tests which included a 30% drop in property prices, according to Pedro Pablo Villasante, former managing director of Supervision at the Bank of Spain between 2000 and 2006.
Yiannis Mouzakis via Macropolis | | Understandably, when the International Monetary Fund published its Debt Sustainability Analysis (DSA) last week, its gloomy projections regarding the unsustainability of Greece’s debt drew all the attention. This meant that many overlooked the fact that the Fund was even gloomier about the Greek economy’s long-term growth prospects.
Yiannis Mouzakis via Macropolis | Following an 11-hour Eurogroup that brought back memories of other classic encounters between Greece and its lenders, an agreement was reached to disburse 10.3 billion euros from the programme’s financing in two tranches – next month and in September – as the much-contested debt issue was put on the table.
Christine Lagarde’s two-day-visit to China concluded on Monday without any specific agreements on how Beijing will fend off financial risk. But Premier Li Keqiang insisted that they will use all the tools available. Trillions of renminbi of debt have built up in the Chinese economy as a result of decades of stimulus and easy credit.
BARCLAYS | Argentina’s incoming finance minister, Alfonso Prat-Gay, has made some important statements about short-term economic policies. We think that his comments are steps in the right direction and indicate pragmatism, in that they seek a solution to economic problems while addressing restrictions imposed by social, political, and economic realities.
Fernando Barciela | The IMF and other international organisations including the OECD are very worried these days that the global economy will only grow 3.3% or less this year. On the other hand, they are very happy about Spain achieving the same level. Why? What makes the diference?
By Jarno Lang | On June 29, under the leadership of China, 50 founding members signed contracts to create the Asian Infrastructure Investment Bank (AIIB), with its main hub in Shanghai.
IMF praises Spanish strong recovery but recommends additional reforms to strengthen growth and accelerate the fiscal consolidation.
BARCELONA | July 17, 2015 | By Joan Tapia | The lowering of the income tax while taking money from the country’s pension funds can only be justified as a way to inject optimism before the election.
PARIS | April 20, 2015 | By Francesco Saraceno | Recently I commented on the intriguing box in which the IMF staff challenges one of the tenets of the Washington consensus, the link between labour market reform and economic performance. But the IMF is not new to these reassessments. In fact over the past three years research coming from the fund has increasingly challenged the orthodoxy that still shapes European policy making.