ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

IMFSubscribe to IMF

Resolving the Debt Crisis

As the number of developing countries likely to default on external debt service commitments increases, the effort to resolve debt crises in countries that have defaulted many months back remains unsuccessful.

India’s Turn to Save the World from the Next Crisis

A silent wave of financial stress is running through the world financial markets. India, the incoming G20 President, must provide the leadership necessary to save the world from an emerging market debt crisis. The proximate cause of the crisis is the combination of COVID-19 debt and a jump in the US dollar. Fighting the dollar’s appreciation with higher interest rates on debt will push the world into recession. Faced with a rich-country commercial bank debt crisis in 2008, the G7 announced that they would use all the available tools and take all necessary steps to save the banks. We need to do the same today for countries. India should press the IMF to immediately increase access to its unconditional rapid fi nancing facilities and temporarily suspend interest rate surcharges. Avinash

Sri Lanka Stumbles into a Solvency Problem

Majoritarianism and excessive centralisation of powers are the primary reasons for the economic turmoil.

 

IMF's Autocritique of Neo-liberalism?

In a recent article published in Finance and Development, an International Monetary Fund magazine, three economists have critically evaluated the policies the IMF promotes. They acknowledge evidence that suggests that economic growth under neo-liberalism is difficult to sustain, that it leads to an increase in inequality, and that continuing inequality is harmful for sustainable (or continuing) growth.

What Should be the Criteria for Choosing RBI Governor?

Spending a few years in Washington D C as India’s executive director at the International Monetary Fund or some Ivy League think tank should not be considered as a qualification for the post of Governor of the Reserve Bank of India.  Instead, deputy governors and even those junior to them who have spent the immediate preceding years working in Mumbai, and most of whom do have doctorates the PhDs in relevant sub areas, should have the first lien on the governor’s job.

IMF's Call for Complacence

The International Monetary Fund's World Economic Outlook of April 2016 bodes that emerging market economies, including India, are at risk of sudden capital outflows. The IMF once again makes a case for its conventional, much-discredited tools to manage this risk. To repeat these recommendations, that on many occasions have only worsened crises, is to encourage complacency.

Capital Account Management in India

India has been subject to capricious capital flows since its integration with the global capital markets in the early 1990s. In a bid to balance diverse objectives, India, like many other emerging markets, has resorted to active management of various types of capital flows. This paper finds that while the calibrated liberalisation approach resulted in altering the composition of capital flows towards more stable flows, and has helped India to negotiate the "Trilemma," the use of sporadic capital account management measures in the face of surge or stop of capital flows has not been very effective in achieving their objectives of reducing external vulnerability or mitigating macro-prudential risks.

Turning the Light Inward

The IMF's newly set up Independent Evaluation Office has recently released its first report. The report analyses the causes of prolonged use of IMF resources by borrowing countries, with case studies of Pakistan, Philippines and Senegal. This report, to be followed by one on fiscal adjustment in Fund programmes and another on capital account crises in Korea, Indonesia and Brazil, signals that the IMF is serious about turning the light inward to confront its mistakes and shortcomings and draw relevant lessons for its future work. Discussion of the core analysis of the report bearing on the Fund's policies in programme design and implementation in general and in respect of prolonged users of the Fund's resources in particular.

Pages

Back to Top