World Politics News   Articles for World Politics Course

The IMF has admitted that its historical emphasis on “austerity” programs (once called “structural adjustment programs” or SAPs) was ill-conceived.   This comes as no surprise to some observers, who long argued that the IMF cures were often worse than the diseases.  But the admission does cast a different light on the current ideological debate about whether cutting deficits is more important than stimulating economic growth.  We will wait to see if there are any practical implications to the admission.

The US Federal Reserve Bank has been under attack from many developing countries for a number of months.  These countries believe that the Bank’s policy of “quantitative easing” artificially causes their currencies to increase in value and thereby increases the price of their exports (and reduces the price of imports from the US).  The Bank Chairman, Ben Bernanke, attempted to refute this charge, but it is clear that his argument was not persuasive to many.

Malala Yousafzai has been airlifted to England for medical treatment.  Her attempted assassination has provoked a massive outpouring of support from Pakistan and abroad.  In response, the Pakistan Taliban has threatened journalists who are covering the protests.