International Monetary Fund revived by global economic crisis


Institution who a few decades ago seemed idle and irrelevant, the International Monetary Fund (IMF) has regained the fundamental role in the repair of the world economy.

Only this year has provided credit lines to countries like Colombia, El Salvador, Greece, Jamaica, Mexico and Ukraine. With Ireland’s entry to the group member who received financial aid, more and more voices are asking when will come the turn of Portugal or Spain, writes The New York Times.

The world’s largest economies asked International Monetary Fund for help to resolve global trade imbalances and tensions of war exchange. In this context, the IMF gives lessons of Europe – the continent whose collapse led to the creation of international financial institution in 1944 – about how to adapt the new conditions of economic crisis. Ineffective of the IMF management in financial crisis in Asia ’97-’98 years, where the measures required did more harm than good to  Asian emerging markets, was at least apparently forgiven if not forgotten.

Economic crisis, an advantage for IMF

“No for the  IMF money, are countries most in need, but its mechanism to monitor reforms,” said James Raymond Vreeland, policy expert at Georgetown University, adding that interest by focusing on countries in Europe “IMF returns to roots”.

G20, the group’s most powerful economies in the world, make the IMF responsible for solving the problem that tends to threaten world economic order, namely the balance of payments imbalances that have created mutual dependence between Asia and the U.S..

The economic crisis of 2008 had the grounds, the tendency of some countries such as China and Germany to export beyond measure and some countries like USA and UK to borrow and spend excessively.

G-20 summit were made vague promises about the recovery of global imbalances, but it was not the manner in which it will achieve this goal.

One thing is certain: the world’s most developed countries agreed to urge the IMF to repair mechanisms of the global economy.

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Posted by S.Keslar on Dec 6 2010. Filed under Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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