IMF Needs to Spot New Investment Bubbles: Geithner

CNBC just reports that U.S. Treasury Secretary Timothy Geithner called on the International Monetary Fund to provide rigorous surveillance to spot new investment bubbles (link here). IMF pays a central (and successful) role resolving the current crises and politicians keep to brothering the role of the fund. Despite the Fund success in dealing with the crises it failed to send a warning signal before the crises broke out. Still may be questioned whether rare high impact events may be predicted but I think is worth trying to broad the fund surveillance toolbox with complex system tools which may give some better insight into the stability of the system as a whole. Unfortunately so far the Fund keeps working with models which prove to be wrong indicators ahead of the recent crises (i.e. chapter 3 of new WEO). I think that there is urgent and general need to extend the economists toolbox with the out-of-equilibrium models