IMF: Deficit Reduction Policies Increase Inequality
New research produced by the International Monetary Fund (IMF) confirms that “fiscal consolidation” (i.e., deficit reduction) policies of the sort currently applied by several European governments at the behest of the IMF and EU increase inequality and unemployment.
IMF researchers also have determined that capital account liberalization, which the IMF pressed its member countries to carry out until it changed its policy last year, has been associated with increased inequality.
