IMF Stands for Global Economy Insurance
Sebastian Mallaby, The Washington Post | November 13, 2008
Uninsured drivers need to save big for car crashes; nations have done that to prepare for financial crashes. ++ However, every-country-for-itself policies are wasteful and inflate credit bubbles. ++ The IMF was everyone’s insurance after Bretton Woods but it has not kept up with the crash costs. ++ Government payments should be tripled to make the IMF bigger and to help unavoidable crashes like in Brazil. ++ The IMF should also be more powerful to avoid political manipulation by nations like China who have ample reserves.
Tags: | IMF |
international money issues |
financial crisis |
G20 |
Bretton Woods |
financial reserves |