A Wrong Call From The Imf
The abrupt collapse of the Mexican peso eight months ago--an event that necessitated a $50 billion international bailout--is still echoing through the world financial system. Now comes a new report from the International Monetary Fund with a surprising--and disturbing--set of recommendations for avoiding similar disasters in the future. The IMF, which has traditionally favored free movement of capital across national borders, is now claiming that there are situations where it is advisable for governments "to influence the level and characteristics of capital inflows." Suddenly, the new role model of the developing world is not Mexico, which openly embraced foreign investment, but countries such as Chile, Colombia, and Malaysia, which impose tight controls on outside capital.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- The Latest on the Political Turmoil in Zimbabwe
- Goldman Sachs Sees Four 2018 Fed Rate Hikes as U.S. Growth Gains
- Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’
- Tesla Unveils ‘World’s Fastest Production Car’ and Electric Big Rig
- Norway Oil Bosses Insist End Isn't Nigh After $35 Billion Shock