An alternative to the IMF? The Emerging Monetary Fund

Simon Johnson, Chief Economist at the IMF from March 2007 to August 2008, writes in the October 19th issue of Business Week that:

“To be effective, an international lending organization must be trusted by potential borrowers”. 

Unfortunately, many developing countries do not trust the IMF, and Johnson proposes the creation of a new entity – an EMF, or Emerging Monetary Fund.

Johnson’s proposes that

“The EMF would be like your friendly neighborhood physician; the IMF could run intensive care”.

Read his rationale in the Business Week article, “An IMF Just for Emerging Markets”

Post written by Peter Bloch, consultant to CAS-IP

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One response to “An alternative to the IMF? The Emerging Monetary Fund

  1. The IMF has lost credibility it failed to spot the sub prime crisis in USA and have not held them accountable.Yet they impose strict fiscal standards on developing countries causing civil unrest.

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