IMF’s next Chief Economist – Oliver Blanchard

Eurointelligence pointed that next IMF’s Chief Economist is going to be Oliver Blanchard, economist at MIT.  Eurointelligence points to this based on Reuter’s article:

The International Monetary Fund’s (IMF) next chief economist has said he is upbeat about the global economy, partly because of emergency measures taken by the U.S. Federal Reserve which have prevented the credit crunch causing excessive damage.

Olivier Blanchard, who will become chief economist of the IMF on Sept 1, said the Fed’s aggressive interest rate cuts and massive injections of liquidity since the autumn mean the threat to the U.S. from the credit crunch ‘is not enormous’.

On a global scale, Blanchard said authorities ‘understand fairly well’ the problems presented by the credit crunch, which include the bursting of the U.S. property bubble, the crisis in financial markets and soaring commodity prices.

This level of understanding makes him ‘relatively optimistic’ on the outlook for the global economy, Blanchard said.

The future IMF economist described the U.S. property crash as ‘one of the most standard crises you could have’, and played down the impact of the spike in crude oil prices, saying the world is not facing a repeat of the 1970s oil crisis.

He is pretty optimistic indeed!!

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