Of course, the usual suspects, Krugman and Stiglitz, have long been loudly lambasting international austerity in general. And others—from Rogoff through to Obstfeld, Fischer, Rajan, Summers, Sachs, and even Wessel and Dervis—have expressed reservations more sotto voce. And all of these sympathize with the Greek people.
Yet none have spoken plainly to the Greeks nor turned their guns openly on the IMF—despite its pivotal role on this matter in Europe after 2010 and now in Greece, and despite the global risks arising from these IMF positions. Whatever these luminaries’ loyalties to the institution, their silence is deafening and is of moment. They should shout, together, right now, while the IMF is in session in DC.
If nothing else, this message to the Greeks and the IMF would put the profession on the record against the louder voices of Euro politicians, including those at the IMF. If we remain quiet now, they and the IMF, by default, speak for us. That makes sensible resolution between these two European patriots virtually inconceivable, it leaves the Euro tinder-box primed to explode, and it may leave our profession deserving of the low esteem in which it is now widely held.
Former IMF staffer Peter Doyle, FT Alphaville 17 April 2015
Economic theory discredited