Opinions - Monday, 15 June 2009
The Debate over Crisis and its Solutions: Geithner, Summers, Krugmann and the Future of the IMF
A New Financial Foundation (The Washington Post ), Stay the Course (The New York Times), Promises, promises (The Economist)
A New Financial Foundation (The Washington Post - U.S.)
By Timothy Geithner and Lawrence Summers
Over the past two years, we have faced the most severe financial crisis since the Great Depression. The financial system failed to perform its function as a reducer and distributor of risk. Instead, it magnified risks, precipitating an economic contraction that has hurt families and businesses around the world.(...)
Stay the Course (The New York Times - U.S.)
By Paul Krugman
The debate over economic policy has taken a predictable yet ominous turn: the crisis seems to be easing, and a chorus of critics is already demanding that the Federal Reserve and the Obama administration abandon their rescue efforts. For those who know their history, it's déjà vu all over again -- literally. .(...)
Promises, promises ( The Economist - U.K)
Much has changed for the IMF as a result of the financial crisis. The G20 summit in London in April promised a tripling of its lending capacity. Long known for championing fiscal stringency, the fund has recommended that Tanzania and Mozambique consider countercyclical fiscal expansions. Mexico, Colombia and Poland have been enticed to sign up for its new precautionary lines of credit. Another first is now well on the way, as the IMF prepares to issue its own bonds. (...)
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