. 
"Now is a historic juncture for the International Monetary Fund.
The focus of the policy response to the euro crisis must now shift from Brussels and Frankfurt to the IMF’s boardroom."
really larry ...pray tellus why ???
"From the problems of the UK and Italy in the 1970s, through the Latin American debt crisis of the 1980s to the Mexican, Asian and Russian financial crises of the 1990s, the IMF has operated by twinning the provision of liquidity with strong requirements that those involved do what is necessary to restore their financial positions to sustainability."
and the record shows ???
errrrrr
" There is ample room for debate about the precise policy choices the fund has made in the past. "
"But"
" the IMF has consistently stood for the proposition that the laws of economics do not and will not give way to political considerations."
got that ????...plowing on
" At key points the IMF has offered prescriptions, not just for countries in need of borrowed funds, but also for those whose success is systemically important for the global economy."
lots packed into that sentence eh ???
"First, it is essential that Italy’s adjustment be carried out within the context of an IMF programme. "
why ??
well
" there are profound intra-European political problems if northern Europe either does or does not impose conditions on Italy. It would be much better to outsource those traumas to the IMF."
outsourcing trauma
"Second....the IMF support for any European country should be premised on understandings with the European Central Bank that controls that country’s monetary policy"
understandings with the ECB ?? a multitude can race thru that lacuna
.
"Third, when engaging with individual members of a monetary union, the IMF cannot assess the prospects of one member of the monetary union in isolation. If some countries are to enjoy reduced trade deficits, others must face reduced surpluses"
putting a fine point on this:
attendez vous krauts:
". If there is no clear path to reduced surpluses
there is no clear path to reduced deficits and hence to solvency."
More generally, the sustainability of any programme must be assessed in the context of realistic projections of the economic environment. The IMF must be careful not to approve adjustment programmes that are not realistic.
Fourth, the IMF has a responsibility to speak clearly about threats to the global economy. Even if debt spreads in Europe fall and modest growth is reattained, the global economy is threatened by the large-scale deleveraging of European banks.
" An improvement in the fiscal position of sovereigns will help but this is insufficient."
If banks are not recapitalised on a substantial scale soon, there will be a large contraction of credit in the global economy.
After the summit attention will and should shift to the IMF.
It must act boldly but.."
" no one should ever forget
a fundamental lesson of all past crises......... The international community
can provide support ......but .... a nation or a region’s prospect for prosperity depends ultimately...... on its own efforts. "
The focus of the policy response to the euro crisis must now shift from Brussels and Frankfurt to the IMF’s boardroom."
really larry ...pray tellus why ???
"From the problems of the UK and Italy in the 1970s, through the Latin American debt crisis of the 1980s to the Mexican, Asian and Russian financial crises of the 1990s, the IMF has operated by twinning the provision of liquidity with strong requirements that those involved do what is necessary to restore their financial positions to sustainability."
and the record shows ???
errrrrr
" There is ample room for debate about the precise policy choices the fund has made in the past. "
"But"
" the IMF has consistently stood for the proposition that the laws of economics do not and will not give way to political considerations."
got that ????...plowing on
" At key points the IMF has offered prescriptions, not just for countries in need of borrowed funds, but also for those whose success is systemically important for the global economy."
lots packed into that sentence eh ???
why ??
well
" there are profound intra-European political problems if northern Europe either does or does not impose conditions on Italy. It would be much better to outsource those traumas to the IMF."
outsourcing trauma
"Second....the IMF support for any European country should be premised on understandings with the European Central Bank that controls that country’s monetary policy"
understandings with the ECB ?? a multitude can race thru that lacuna
.
"Third, when engaging with individual members of a monetary union, the IMF cannot assess the prospects of one member of the monetary union in isolation. If some countries are to enjoy reduced trade deficits, others must face reduced surpluses"
putting a fine point on this:
attendez vous krauts:
". If there is no clear path to reduced surpluses
there is no clear path to reduced deficits and hence to solvency."
More generally, the sustainability of any programme must be assessed in the context of realistic projections of the economic environment. The IMF must be careful not to approve adjustment programmes that are not realistic.
Fourth, the IMF has a responsibility to speak clearly about threats to the global economy. Even if debt spreads in Europe fall and modest growth is reattained, the global economy is threatened by the large-scale deleveraging of European banks.
" An improvement in the fiscal position of sovereigns will help but this is insufficient."
If banks are not recapitalised on a substantial scale soon, there will be a large contraction of credit in the global economy.
After the summit attention will and should shift to the IMF.
It must act boldly but.."
" no one should ever forget
a fundamental lesson of all past crises......... The international community
can provide support ......but .... a nation or a region’s prospect for prosperity depends ultimately...... on its own efforts. "
