Thursday, May 08, 2003


Wow, these comments by Ken Rogoff are pretty surprising.

Kenneth Rogoff, the I.M.F.’s chief economist, went even further. He recently told journalists, “Suppose for a minute that we were talking about a developing country that had gaping current account deficits year after year . . . a budget ink spinning from black into red . . . open-ended security costs, and a real exchange rate that had been inflated by capital inflows. With all that, I think it’s fair to say we would be pretty concerned.” When I.M.F. types start talking about the United States as if it were a banana republic on a bad day, it’s probably time to change course.