Don’t believe the WEO

ITS USEFUL to be reminded once again of the flaws that underpin the IMF’s World Economic Outlook (WEO) publication—as well as the fact that the Fund continues to fail to pursue her global multilateral surveillance responsibilities. Indeed, last week’s WEO provides yet more ammunition for those who claim the Fund peddles style and not substance, lacks an analytical basis for meeting her obligations.

But first the good news. This blog noted in a belligerent style how the April WEO assumed the global current account moved from a surplus “discrepancy” of USD375BN in 2019 to deficit of nearly USD375BN. The discrepancy itself is a puzzle that we need not solve here. But that doesn’t mean it can be assumed away. 

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