IMF and Adaptive and Balanced Policy

This is in contrast to the orthodoxy of the US Fed, which is trying to restore its credibility as a monetary authority as it continues to raise its benchmark interest rate several more times in 2022 and 2023.

The International Monetary Fund (IMF) has again issued a warning about the possibility of a global recession in 2023. The IMF recently lowered its 2023 global economic growth forecast to 2.7 percent, from its previous forecast of 2.9 percent made in July. One of the interesting things about the warning is how the IMF tries to maintain a balance in controlling inflation expectations without sacrificing growth potential too much.

In addition, the IMF is also trying to reduce impacts of its announcement by balancing gloomy prospects with expectations and solutions. This is an alternative approach to the orthodoxy of the United States Federal Reserve (Fed), which has a tight target of bringing inflation back to around 2 percent, regardless of the risks.