The Confused Thinking of the IMF
It gets worse, as they in the same report notes that "``Elevated'' house prices in Spain and Ireland could also undermine the economy, it said.". Actually, it's not just in Spain and Ireland that house prices are "elevated" and this imbalance is of course caused by the fact that the ECB have followed the IMF:s advice not to rush to normalize interest rates. Thus, in this report IMF calls for the ECB to aggravate the problem they worry about in the same report. This is a clear example of the incompentence that is behind the fact that countries that implement IMF policies usually see their economic crisis worsen.