The IMF formula has come under criticism, from differing points of view, that its recommendations are inappropriate for Indonesia's economic circumstances. Some critics contended that providing emergency loans created 'moral hazard', encouraging the governments of other developing countries to adopt irresponsible economic policies with the assurance that the IMF would come to their rescue. Others have criticised the conditions attached to the loans, arguing that cutting government expenditure and high interest rates has led to an unnecessarily deep recession. The argument is that the IMF's financial stabilisation packages tend to follow a standard formula which evolved to treat economies experiencing hyper-inflation and bloated fiscal and current account deficits (especially in Latin America), but which was inappropriate for Indonesia where these problems were not significant and where fiscal and macroeconomic policy had generally been quite orthodox. There has also been criticism of IMF pressure for cuts to subsidies for basic consumer commodities as worsening the plight of many already impoverished Indonesians.