Source: London Telegraph
Plan B: Flood the markets
Meeting halls A and B in HQ1 of the International Monetary Fund’s concrete plaza of buildings in Washington are a drab affair. Bare walls, muted browns and hovering interpreters’ booths perfectly capture the characterless functionality of the world’s economic watchdog.
For the finance ministers and central bank governors from the world’s leading 20 countries who were dining in the hall that night, however, the 1970s minimalism was wholly appropriate. Talk could turn to austerity without the jarring distraction of vaulting chandeliers and priceless art.
For George Osborne and Charlie Bean, the Bank of England deputy Governor who was standing in for Sir Mervyn King, there was an added poignancy. The construction of meeting hall A and B was reputedly financed by the interest payments Britain made on the £3.9bn IMF loan the country took in the dark days of 1976 – the era of the three day week and 25pc inflation. (more…)