IMF rejects claims Coalition should drop austerity

The IMF has hit back at its former expert on Ireland for demanding the Government drop its austerity agenda.

The global financial organisation strongly distanced itself from the comments made by Ashoka Mody, its former chief of mission to Dublin, after he branded austerity a “potentially self-defeating policy”.

In a crisp response, the IMF said Prof Mody was now retired and there was no evidence to back his economic assertions.