Finance Chiefs at IMF Split Over Forces Behind Capital Flows
This article is for subscribers only.
Global finance chiefs split over which policies are most to blame for propelling potentially risky capital flows into emerging markets, with both sides pushing the International Monetary Fund to adjudicate.
The disagreement marked the second day of the IMF’s semi-annual meetings which drew policy makers from the lender’s 187-nation membership to Washington. U.S. Treasury Secretary Timothy F. Geithner blamed a lack of currency appreciation in developing nations such as China for driving so-called hot money into more open markets, while Brazil Finance Minister Guido Mantega pointed his finger at loose monetary policies in rich nations including the U.S.