Taken from Columnist: Wolfgang Münchau
http://www.ft.com/cms/s/0/6ccb8e40-4364-11e1-8489-00144feab49a.html#axzz1kFb93LP6
Columnist Wolfgang Munchau argues that the International Monetary Fund should take a backseat when handling the eurozone crisis at the moment because most measures that the IMF is willing to take would be counterproductive. Right now, the European Central Bank has the ability to resort to lending if needed and does not need the outside financial aid of the IMF. Munchau also argues that it would be easier and more efficient to allow the European Central Bank to lend within its boundaries than for the IMF to go through different political obstacles that are necessary for loans.Furthermore, Euro holding nations are taking larger steps to make sure they do not fall like Greece, and reduce the risk of a potential domino effect of the European economy.Munchau's main argument is that if the IMF does get involved in bailing out other countries, the lenders will bare more of a burden than if the bond-sharing stays within the European Union.
http://www.ft.com/cms/s/0/6ccb8e40-4364-11e1-8489-00144feab49a.html#axzz1kFb93LP6
Columnist Wolfgang Munchau argues that the International Monetary Fund should take a backseat when handling the eurozone crisis at the moment because most measures that the IMF is willing to take would be counterproductive. Right now, the European Central Bank has the ability to resort to lending if needed and does not need the outside financial aid of the IMF. Munchau also argues that it would be easier and more efficient to allow the European Central Bank to lend within its boundaries than for the IMF to go through different political obstacles that are necessary for loans.Furthermore, Euro holding nations are taking larger steps to make sure they do not fall like Greece, and reduce the risk of a potential domino effect of the European economy.Munchau's main argument is that if the IMF does get involved in bailing out other countries, the lenders will bare more of a burden than if the bond-sharing stays within the European Union.
Sahil:
ReplyDeleteAddressing the Eurozone conflict is something consistent with your views on international finance this whole year. It's timely and compelling.
A second entry?
+5/10
Mr. Heller