Macri risks IMF self-harm in search for stability 8 May 2018 Argentina’s president wants funding from the global lender as a further buttress against inflation and a run on the peso. It could help make reforms stick and provide an outsider to blame. But the country’s history with the IMF means it might also dim Macri’s political prospects.
Hadas: Debt overload is an easy problem to solve 25 Apr 2018 Three financial revolutions would be enough to bring down debt. Tax corporate debts, don’t subsidise them. Let the public share unearned gains on land. And replace government debt with newly printed money. These ideas may sound too radical – until the next mega-crisis arrives.
IMF does a better job of worrying than forecasting 17 Apr 2018 The international lender's concerns, including protectionism and a sharp shift in financial conditions, are more useful than its unreliable global growth forecasts. The more policymakers fret about such dangers, the more likely the world is to be prepared and avoid the worst.
Romer exit flags World Bank’s human capital limits 25 Jan 2018 The academic known for his work on economic growth is leaving the bank after just 15 months. The attempt to shake up a staid institution fits his theories’ emphasis on new ideas. But his brash manner shows how organisations can be less than the sum of their inputs.
Sutherland embodied ups and downs of globalisation 8 Jan 2018 Former European Commissioner, trade chief and BP chair Peter Sutherland, who has died at 71, worked to make it easier for goods, capital and people to cross borders. His triumphs were blotted by corporate failures. Yet his legacy deserves to survive the current backlash.
Dixon: Start preparing for fourth Greek bailout 3 Apr 2017 Despite a last-minute wrangle over pensions, Greece is likely to get the next chunk of the money due under its current bailout plan. But this will only buy Athens time until the middle of 2018. After that, a new programme, and more fraught negotiations, will probably be needed.
Christine Lagarde exit would boost IMF’s credibility 19 Dec 2016 The multilateral lender's managing director has been found guilty of negligence in France. Lagarde has provided steady direction, but keeping her in place risks denting the fund's image. Besides, it's a chance to rethink the outdated tradition of all IMF bosses being European.
Europe’s long weekend presents a triple threat 1 Dec 2016 In the space of just 48 hours Italy's premier will face a make-or-break referendum, Austria could elect a far-right president, and Greek debt talks will reach a head. All three have the potential to revive the centrifugal forces that could send Europe spinning out of control.
Specter of Trump scares open Western purse strings 12 Oct 2016 Spooked by growing populist backlashes, politicians are promising to boost spending. Sensible investments in infrastructure and education are overdue, but will take years to pay back. With debt at record levels, central banks will need to help pick up the tab.
Falling inequality hides rich nations’ failings 3 Oct 2016 The gap between the very rich and very poor has fallen since 2008 - even in developed countries. That’s the surprising finding of a new World Bank report. But a different measure shows rich countries are less good at sharing prosperity. Growth is too weak to mask this failure.
Guest view: Where is the IMF on Greece? 3 Oct 2016 The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.
Ukraine’s IMF bailout is a drop in the bucket 21 Sep 2016 The International Monetary Fund approved a $1 bln aid tranche after a year’s delay, waiving some criteria in the process. It’s a start. But the country has to overcome corruption and get back in business. An ongoing standoff with Russia makes that unusually tough.
Global leaders test limits of spreading wealth 6 Sep 2016 “Inclusion” was the buzzword at the G20 conflab. A fairer distribution of the fruits of growth is urgent when globalisation is under attack in the West. The challenge for politicians is to reduce inequality within rich countries without the rest of the world suffering.
Egypt’s IMF cure poses health risk for Middle East 5 Aug 2016 The most populous Arab state wants a $12 bln IMF deal, but not the harsh austerity sometimes attached. Funding would boost the economy, but reforms could also stoke unrest. In a country at the centre of uprisings that swept across the region six years ago, that's no small risk.
Greece will prove if IMF mea culpa is genuine 29 Jul 2016 The international lender's handling of the Greek 2010 bailout is censured by an internal report. Some of the critique is dated and IMF boss Christine Lagarde says lessons were already learnt. The litmus test will be how trenchantly she insists on new debt relief for the country.
Private bondholders won’t make the IMF better 11 Oct 2011 Proposals to let the IMF tap private investors by issuing bonds look desperate. It could use extra cash to aid the euro crisis, but new funding might delay restructuring. It could also give the fund too much firepower and risk leaving it beholden to fickle market sentiment.
IMF joins euro zone in gaffe hell 6 Oct 2011 The head of the International Monetary Fund’s European department had to retract a suggestion that the IMF could participate in euro zone bond buying programmes. After divided governments and a split ECB, markets may have to get used to a bumbling IMF.
IMF bond-buying a potential euro game-changer 5 Oct 2011 The International Monetary Fund says it might buy sovereign bonds to help the euro zone fight the contagion effects of the Greek crisis on Italy and Spain. This could work if both countries continue to reform, and once the region’s weaker banks have been shored up.
IMF’s dovish turn may be seen as favor to the rich 26 Sep 2011 The fund has long been a tough schoolmaster on fiscal probity. This softened after 2008 and now the IMF is proposing still more stimulus in some nations. This makes economic sense but opens the fund to charges that it pushes Keynesianism for the rich and monetarism for the poor.
Can the BRICs save the PIIGS? 21 Sep 2011 Brazil’s limited offer of $10 billion of support is pure posturing. But its idea to channel it through the IMF has merit. But why limit the effort to the BRICS? Other large holders of reserves - such as Japan and Saudi - should also join the club.