IMF admits Asian crisis mistakes
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE INTERNATIONAL Monetary Fund has conceded it made mistakes in the Asian financial crisis. A report concludes that in the main its policy prescriptions towards South Korea, Indonesia and Thailand were correct, but there was a crucial flaw: the IMF assumed its programmes would rapidly restore market confidence, and they did not.
"However, in the event, the programmes and their initial implementation did not restore confidence quickly enough, capital accounts were much less favourable than assumed and so the reverse happened," says the report.
The Fund also conceded it may have misjudged calls for government spending cuts. But it defended calls for rapid monetary tightening, saying that only this could restore currency stability and head off inflationary spirals.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments