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Wednesday, October 23, 2013

Eurozone Crisis: How The IMF Managed To Discredit Itself

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The IMF loans to Greece, Ireland and Portugal are considered controversial by some analysts. This column argues that these loans – granted without having agreed on convincing paths to manageable debt levels – constituted a substantial departure from IMF principles. The situation is costly for Europe and, having now permanently changed the principles guiding large IMF loans, it will be costly for crises to come. A serious rethink of the management and decision-making structure of the IMF is needed.

The IMF loans to Greece, Ireland and Portugal are considered controversial by some analysts. This column argues that these loans – granted without having agreed on convincing paths to manageable debt levels – constituted a substantial departure from IMF principles. The situation is costly for Europe and, having now permanently changed the principles guiding large IMF loans, it will be costly for crises to come. A serious rethink of the management and decision-making structure of the IMF is needed.

See Also links url:  http://www.economywatch.com/in-the-news/imf-admits-to-notable-failures-in-greece-bailout.06-06.html Title:  IMF Admits to “Notable Failures” in Greece Bailout See Also type:  Reference

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READ THE ORIGINAL POST AT www.economywatch.com