Should we stop the IMF from doing what it should not do? A radical idea
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The International Monetary Fund (IMF) was established to facilitate the management of a global fixed exchange rate regime. That role largely disappeared in the 1970s. Since then the IMF has become the economic policy director of countries in crisis, a role it is ill-suited to serve, and which it has fulfilled poorly. This chapter reviews the IMF's performance in managing the debt crisis of the 1980s, the East Asian crisis of the late 1990s, Argentina's crisis of 2001, poverty in Africa generally, and its role in the recent global financial crisis. It considers how the IMF has served to promote and entrench the strong resistance of the global financial system to needed changes, and analyses the steps that need to be taken to reform the IMF, including removing the role of setting economic policy for developing nations in crisis.
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