International Monetary Fund Reform

Abstract

Recent expansions in trade, investment, and technological capability to transfer financial resources internationally, have led to much larger capital flows. But the major economic problems in many countries, raise questions about the IMF’s capacity to handle larger-scale economic crises and widespread investor panic, such as were rampant among international markets in 1997 and 1998. The IMF was created to ensure stabilityof exchange rates and support international trade and investment, not to manage economic problems of such magnitude. IMF practices generate “moral hazards†inhibiting financial prudence and needed reforms, and tend to involve massive subsidies to borrowing countries. IMF decision making lacks transparency, and the IMF is not really acting as a “lender of last resort.†This essay analyzes these problems and proposes major changes.
Published
2017-02-17
How to Cite
. International Monetary Fund Reform. Hinckley Journal of Politics, [S.l.], v. 2, feb. 2017. ISSN 2163-0798. Available at: <http://epubs.utah.edu/index.php/HJP/article/view/3692>. Date accessed: 20 may 2019.
Section
Student Papers