Would U.S. Economic Policy Pass Muster with the World Bank and IMF?
Kyle, Steven C.
This paper looks at current U.S. macroeconomic policy from the point of view of the World Bank and the IMF. While the United States is neither a developing country nor in need of international financial assistance, it is nevertheless interesting to apply conventionally accepted international economic management standards to see whether the current policy mix would meet with the approval of professional economists from these institutions. Though most current indicators for the US look good, there is a distinct potential for problems in the future given the projected trajectories of federal spending and revenues. The paper summarizes the basis for these observations and gives recommendations for change.
WP 2003-09 April 2003
Charles H. Dyson School of Applied Economics and Management, Cornell University