IMF concerned about local government agendas
The IMF has today stepped forward with concerns that governments around the world seem more interested in their local economies than the worldwide economy. As a consequence, the IMF believes that the overall recovery of the worldwide economy is being put in jeopardy by individual agendas which are not always in favour of the global economy.
As we mentioned in one of our earlier articles, a number of governments around the world seem happy to see their currencies weaken in the short to medium-term in order to increase the level of future exports. We have seen this in the UK to a certain extent, we now see this in America and even the Chinese authorities are wary of their local currency pushing too far ahead. This jockeying for position is not good for the overall worldwide economy and the IMF is very valid in its criticism of local governments.
However, when you consider that governments around the world have a duty to support their national population, as opposed to the worldwide population, can you really blame the likes of the US, the UK and China for example for "looking after number one?" - What would you do in their shoes?
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