The newly appointed, and highly regarded, Christine Lagarde, managing director of the International Monetary Fund, has given her thoughts to the ‘Financial Times’. The article was headed ‘Don’t let fiscal brakes stall global recovery.’
From a promising start which suggested some positive thoughts on the stimulation of an economic recovery, her thoughts became less clear as each paragraph developed.
Early on she wrote
“So fiscal adjustment must resolve the conundrum of being neither too fast nor too slow.”
Does anybody, apart from Madame Lagarde, know what this means? If George (the Chancellor) picks up on this his Commons statements will have Ed Balls crawling under the benches.
“My zero growth strategy is based on fiscal balance and whilst the bond markets continue to finance our debt (which was all Gordon Brown’s fault) I can talk complete nonsense and nobody will notice.”
Madame Lagarde was warming to her task as she delivered her next powerplay:
“Shaping a Goldilocks fiscal consolidation is all about timing.”
Goldilocks originated in 1837 from the poet Robert Southey. Originally an old woman she was transformed (by Hollywood) into a lovely young girl who ate the bear’s porridge.
How she is then transformed into an economic argument is beyond me.
The next bombshell from Madame Lagarde reads as follows
“Debt-reduction strategies must be based on concrete and substantive commitments but set with a delay.”
That is what Alistair Darling argued in the last election and received little thanks from the electorate. It is good to see the Scots and the French uniting.
It is worth reading the whole article in view of the importance of Christine Lagarde’s job and her possible role in the Eurozone crisis.
“There is more to do…including getting monetary policy right.”
You just the love the French don’t you….!