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I can think of one explanation: No single European country can veto an IMF decision. The US can. Geithner could just have been the one who formally killed the plan. Not necessarily on his own initiative, but on behalf of the creditor nations.
by generic on Mon May 9th, 2011 at 09:12:23 AM EST
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But of course the EU and UK are not constrained to follow IMF recommendations either.
by rootless2 on Mon May 9th, 2011 at 09:51:45 AM EST
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Of course. But It would have been supremely embarrassing for everyone involved were the IMF to sing from a completely different hymn sheet.
by generic on Mon May 9th, 2011 at 11:07:29 AM EST
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The G7 consists of the US, Japan, Germany, France, UK, Italy and Canada.

Three of the 7 (Germany, UK, France) are home to major creditor banks of the Eurozone, Italy is the in the PIIGS but not in the PIGS, and Canada and Japan presumably wanted nothing to do with the Euro policy mess. The US happens to be the single country which can veto the IMF and has no skin in the Irish rescue game, so its position can be sold to the outside world as disinterested.

Germany, the UK and France politely ask Geithner during the G7 conference call to veto the IMF position on Ireland, and he obliges.

Is that an implausible scenario?

All the same, Frank is right that he chose not to excerpt this part of the story in his diary and Geithner has been brought in by an American quoting Yves Smith...

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Tue May 10th, 2011 at 02:05:40 PM EST
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