It’s high time we ask how the IMF ’s mandate for dealing with emerging-market debt crises should be refocused, says Kenneth Rogoff.
How can the IMF be effective in helping countries regain access to private credit markets when any attempt to close unsustainable budget deficits is labeled austerity?
The IMF’s difficulty in saying no to Argentina partly reflects an acrimonious history stemming from the failed loans from the late 1990s through 2001.
There is a case to be made that by pushing the IMF to go easy in its loan programme, US President Donald Trump’s administration made Argentina’s latest economic calamity worse. After all, Argentine President Mauricio Macri’s father was a business partner and friend of Trump.
But while non-government organisations might cheer if the IMF were to convert its loans to grants, pretty soon the Fund’s coffers would be bare. This, too, might make some people happy, but it would be a disaster for global financial stability.
Booming commodity export prices allowed the economy to continue growing, but when the cycle turned, it all fell apart.
The normal prescription for an incoming administration would have been to take the pain of budget consolidation early on, and hope that the economy recovers well in advance of the next election. Instead, Macri decided to close the budget gap slowly, and use his political honeymoon to cut taxes and liberalize markets.
The short answer is that the IMF cannot do it alone. The only way to square the circle is with a huge increase in aid flows.
Kenneth Rogoff, a former chief economist of the IMF, is Professor of Economics and Public Policy at Harvard University.Read more: CNA
RichardM_A Lenin ecuavisa teleamazonasec PabloDavalos63 CONAIE_Ecuador lean este artículo. La ayuda del IMFNews solo daña la economía de.los países. Argentina cayó dos veces en insuficiencia de fondos para pagar la deuda gracias a las recetas del fondo.
S’pore’s 2019 exports could be headed for worst showing since global financial crisis: EconomistsSINGAPORE — Some economists fear that Singapore’s exports in 2019 could turn in their worst performance since the global financial crisis a decade ago, with the release on Thursday (Oct 17) of another weak set of figures for September.
As the beer flows, so does the economy, as consumers keep growth aloftIf the global economy hits the skids, the warning may come from the hop-covered taproom of the Denver Beer Co, where yearly sales are up 17per ...
Commentary: What the next phase of China’s reform and opening up looks likeContinued progress on global integration will require China to adjust its approach, say Andrew Sheng and Xiao Geng
Commentary: Facing disrupted futures, Singapore’s youth must put their mental health firstRather than neglect our mental health to arrive first in a race that never ends, let’s prioritise it so we can keep running this marathon, says Ng ...
IMF will include climate in country analysis, says new chief Kristalina GeorgievaLONDON (BLOOMBERG) - The IMF 's new managing director, Kristalina Georgieva, put climate change high up on the agenda at this year's annual meetings in Washington, saying the fund is getting ready to incorporate environmental risk into its economic analysis.. Read more at straitstimes.com.
IMF sees some easing of US-China tensions, urges reforms of global trade systemWASHINGTON (REUTERS) - The International Monetary Fund said on Thursday (Oct 17) it saw signs of de-escalation in trade tensions between the United States and China, which could reduce the damage already caused to the global economy by tit-for-tat tariffs.. Read more at straitstimes.com.