IMF Performance in the Run-Up to the Financial and Economic Crisis

This new report about the IMF is in line with the impresion I had when working there for few months:

The IEO found that the IMF’s ability to identify the mounting risks was hindered by a number of factors, including a high degree ofgroupthink; intellectual capture; and a general mindset that a major financial crisis in large advanced economies was unlikely. Weak internal governance and aninstitutional culture that discourages contrarian views also played an importantrole.

Coming from the IADB, where discussion was encouraged and relations were fairly horizontal, the IMF was to me a very rigid structure and a endogenous laboratory of ideas...

Here the entire report by IEO.

ht: Ugo