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