Publication

This paper examines the policy advice given by the IMF to European Union countries in 67 Article IV agreements for the four years 2008-2011. It focuses in particular on fiscal adjustments, inflation targeting (in countries where it is relevant, i.e. outside the eurozone), employment generation and social protection. This content analysis finds a consistent pattern of policy recommendations, which indicates (1) a macroeconomic policy that focuses on reducing spending and shrinking the size of government, and (2) a focus on other policy measures that would tend to reduce social protections for broad sectors of the population, reduce labor's share of national income, and possibly increase poverty, social exclusion, and economic and social inequality as a result.