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Anti-austerity protest in Spain (Photo: Antonio Rull)

IMF economists admit to 'errors' on austerity policy

The International Monetary Fund's (IMF) top economists Olivier Blanchard and Daniel Leigh have drafted a special working paper on their own previous "errors" in predicting the impact of austerity on European economies.

"Forecasters significantly underestimated the increase in unemployment and the decline in domestic demand associated with fiscal consolidation," the paper, out last week, says.

After having b...

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