IMF Suffers from Groupthink on Subject of the EU

by Paul Marshall

This week, the British people should prepare themselves for the unsolicited EU referendum advice of another member of the Davos elite when Christine Lagarde of the International Monetary Fund publishes her annual review of our economy.

How much attention should we pay?

The IMF’s principal remit is to protect the global financial system from instability. This made the institution’s complete failure to predict the biggest banking crisis since the 1930s deeply embarrassing.

The IMF’s chief economist, Oliver Blanchard, explained that he had been fooled by not looking at the “right facts”. An internal review concluded that the IMF’s economic models were prone to analytical errors and “groupthink”.

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