IMF failed to spot financial crisis

The International Monetary Fund (IMF) was criticised by its internal watchdog yesterday for failing to spot the financial crisis, partly because it was “overly influenced” by rich nations. The Independent Evaluation Office said there was a mind-set among IMF economists that developed economies were unlikely to provide a spark for a major financial crisis, given their presumed expertise in monetary and regulatory management. Limited data and insight also prevented its staff from challenging those economies, it said.