IMF Director: Maybe We Printed Too Much Money Without Thinking Of The Unintended Consequences

Real Clear Politics – by Tim Hains

Kristalina Georgieva, director of the board of the International Monetary Fund (IMF), said the following during an event hosted by CNBC on Thursday:

KRISTALINA GEORGIEVA, IMF: I think we are not paying sufficient attention to the law of unintended consequences. We take decisions with an objective in mind and rarely think through what may happen that is not our objective. And then we wrestle with the impact of it.

Take any decision that is a massive decision, like the decision that we need to spend to support the economy. At that time, we did recognize that maybe too much money in circulation and too few goods, but didn’t really quite think through the consequence in a way that upfront would have informed better what we do.

I subscribe entirely to what Christine [LaGarde, the president of the European Central Bank] said about climate shocks. We are already out of time. And the fact that whenever something hits us, we forget about these other crises is incredibly troubling.

I’m sorry. I’m going on here, but I’ll finish in a second.

We act sometimes like eight years old playing soccer. Here is the ball, we are all at the ball. And we don’t cover the rest of the field.

Our ability to deal with more than one crisis at one time is very, very limited. and we have to zero in o the really big things that could determine the future and keep our attention on them.

Full event:

CNBC’s Sara Eisen hosts the IMF’s debate on the global economy, as countries around the world grapple with inflation, the fallout from the pandemic, changing central bank policies, and the war in Ukraine. Panelists include Fed Chair Jerome Powell, IMF Managing Director Kristalina Georgieva, ECB President Christine Lagarde, Indonesia Finance Minister Sri Mulyani Indrawati, and Barbados Prime Minister Mia Mottley.

Real Clear Politics

2 thoughts on “IMF Director: Maybe We Printed Too Much Money Without Thinking Of The Unintended Consequences

  1. “Unintended,” eh? Yeah, for whom?

    Memo to “Christine”: On top of all the other abominations you and yours have committed in Satan’s name, thanks also for besmirching the name “Lagarde.” I thank God hubby is no relation to you (I hope anyway)!

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