The IMF Does Europe
With the IMF playing a central role in the eurozone’s blueprint for a bailout of Greece - and presumably in other distressed European countries - the Fund has come full circle. Once upon a time, in its early days after World War II, the IMF had scores of programs across the Continent, and now that it has landed again, the key question is whether it has a plausible exit strategy.
https://prosyn.org/RJMaWw8
CAMBRIDGE – With the International Monetary Fund playing a central role in the eurozone’s blueprint for a bailout of Greece, the multilateral lender has come full circle. In its early days after World War II, the IMF’s central task was to help Europe emerge from the ravages of the war. Once upon a time, the Fund had scores of programs across the Continent (as Rong Qian, Carmen Reinhart, and I illustrate in new research on “graduation” from sovereign debt crises.) But, until the financial crisis, most Europeans assumed they were now far too wealthy to ever face the humiliation of asking the IMF for financial assistance.