Coronavirus Chaos Is the IMF’s Biggest Test Ever
What the world needs most right now is a lender of last resort.
Physically distanced lending needed.
Photographer: NICHOLAS KAMM/AFPFinance ministers and central-bank governors logging in for this week’s virtual meetings of the International Monetary Fund and World Bank will say the right thing, promising to work together to confront the economic fallout of the coronavirus. The question is whether they will do the right thing and take concrete steps to allow the necessary cooperation and coordination.
Many countries have responded poorly to the pandemic and its economic consequences. The international response has been worse — not just hesitant and ill-planned, but almost invisible. One area of neglect is especially important, and goes to the core of the IMF’s purpose: The world lacks an effective lender of last resort.