Press release, 8 November 2010
A South Centre report argues that the IMF should focus on crisis prevention not crisis lending.
The record of the IMF in preventing financial instability and crises leaves much to be desired. The period since the breakdown of the Bretton Woods arrangements has seen repeated gyrations in exchange rates of major currencies, persistent and growing trade imbalances, recurrent balance-of-payments, debt and financial crises with global repercussions in both emerging and mature economies.
The IMF has been unable to cope with misguided macroeconomic, exchange rate and financial policies in countries with disproportionately large influence on global monetary and financial conditions as well as autonomous destabilizing impulses generated by financial markets and international capital flows unleashed by rapid and widespread liberalization.
This article was tagged: Financial Crisis, Group of 20 (G-20), International Monetary Fund (IMF), Reform of the International Financial System
