IMF has warned that a long downturn is happening. But is anyone listening?

The IMF has not minced any words when it comes to fiscal policy. It has always advocated tight control over the political inclination to spend now and let someone else worry about the future

Higher prices. Lower incomes. We are nearly back to the 1930s.

The finance ministers and heads of central banks of the G20 are meeting in Bali right now. They can be forgiven for feeling depressed because they are. Even the International Monetary Fund (IMF) thinks so.

First came the pandemic. It created the need for income support. So, the central banks, under instructions from their political leadership, loosened monetary policy to an unprecedented extent.

Then, a few months ago, Russia invaded Ukraine and created a vast supply problem for everything.

Taken together, the effect is quite devastating, as the IMF