No, Prime Minister

It’s not just the Germans. The IMF today has poured scorn on Gordon Brown’s useless VAT cut for reasons that any corner shop owner could have explained to the Prime Minister. Here is what Olivier Blanchard, the IMF chief economist, said today.

“Temporarily cutting VAT, a measure that was adopted in Great Britain, does not seem to me to be a good idea – 2 percent less is not perceived by consumers as a real incentive to spend.”

Blanchard joins a small but growing chorus of international officials criticising Brown. Last week, I gave a list of other countries that are trashing Gordon Brown’s attempt to borrow his way out of debt. Here is a list of words from international organisations gently pointing out that Britain’s self-styled emperor has no clothes…
 
Dominique Strauss-Kahn, Managing Director, IMF
When asked which countries should have a fiscal stimulus package: “As I’ve just told you, I’m not going to make an announcement in place of the countries, but I want to answer your question candidly.