Interesting. We might see an increase in the amount of wrongly reported data as a result of the global lockdown. One can only wonder what the consequences of data underreporting might be?
In 1976, the UK government, led by James Callaghan of the Labour, borrowed the sum of $3.9 billion from the International Monetary Fund. The granting of the loan was based on the condition that government fiscal deficit be slashed as a percentage of GDP.
A couple of years later, the chancellor of the exchequer at the time of the IMF loan said this below.
‘If we had had the right figures, we would never have needed to go for the loan”
That’s right!! The decision to borrow money from the IMF was based on wrong data. The public borrowing figures which prompted the UK government to seek IMF loan in 1976 were subsequently revised downwards sometime in the future.
This reminds me of the below event which you can read the full story at https://leveragethoughts.substack.com/p/making-investment-de...
In 1976, the UK government, led by James Callaghan of the Labour, borrowed the sum of $3.9 billion from the International Monetary Fund. The granting of the loan was based on the condition that government fiscal deficit be slashed as a percentage of GDP.
A couple of years later, the chancellor of the exchequer at the time of the IMF loan said this below.
‘If we had had the right figures, we would never have needed to go for the loan”
That’s right!! The decision to borrow money from the IMF was based on wrong data. The public borrowing figures which prompted the UK government to seek IMF loan in 1976 were subsequently revised downwards sometime in the future.