Mauldin “Calamitous misjudgments” is a good way to describe the way the IMF, along with the EU and ECB, has handled the continent’s sovereign debt crisis
The bias developed because, as Ambrose says, the European elites in the IMF have waged a massive love affair with the euro.
And like many in love, they simply could not see the flaws in the object of their affection, the common currency of the eurozone. It was at the very foundation of the whole European project in their eyes.
The IMF-EMU love affair led the agency to accept reports and reassurances from eurozone officials at face value, without the same kind of verification they routinely demand from less-developed countries.
Long before the deluge, people within the agency had argued that the euro system was fundamentally flawed and would eventually fall apart.
Those who said so found themselves overruled and even punished.
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