International Monetary Fund’s former Economic Counsellor Olivier Blanchard. Photo: IMF, Stephen Jaffe
A report by former head economist of IMF Olivier Blanchard with date 4 May 2010 was posted on Twitter in which Blanchard warned that the Greek rescue programme entails high risk due to the level of the necessary fiscal adjustment adding that it can deviate even if it is fully implemented.
The letter addressed to Poul Thomsen was presented at the end of January during an international conference of the Canadian think tank centre for International Governance Innovation by the professor of Economy Paul Blustein who made a summary of the situation” Olivier Blanchard warned that the austerity could go awry, even if done to plan. Dominique Strauss-Kahn (then general director of the IMF) broached debt restructuring but Jean Claude Trichet (then head of the European Central Bank) said no.
“I did not leak but am not too unhappy that it did leak. 7 years already and still no realistic/ clear plan” commented Blanchard on Twitter.