In an editorial arguing for the continuing need for the International Monetary Fund, the Washington noted its "reputation for objectivity." This no doubt prompted roars of laughter among those familiar with IMF projections. The IMF has an especially bad habit of projecting good things for those who do policies it favors, while projecting bad things for those who don't follow its dictates. This is best demonstrated by its growth projections for Argentina. In the 90s, Argentina was an IMF poster-child, privatizing everything in sight and maintaining a currency peg with the dollar. In 2001, Argentina was forced to abandon the peg, and defaulted on its debt, leading it to be come known as the "A-Word" in the halls of the IMF. In the late 90s, the IMF systematically over-projected growth as the currency peg threw the economy into a deepening recession. In the post-default years, the IMF consistently under-estimated growth, Argentina's economy boomed in spite of the IMF's dire forecasts. Perhaps the IMF enjoys a reputation for objectivity at the Washington Post, but not anywhere else in this world.
--Dean Baker