In the European Monetary Fund proposal, a chance to get the IMF right
Whatever its merits for rescuing European nations mired in crisis, the German finance minister's March 7 proposal for a European Monetary Fund provides an opportunity for Europe and the United States to get the future of the IMF right.
The crisis was a good thing for the IMF. Only a few years ago, the Bretton Woods institution was fading into obscurity, but by the late 2009, the Fund had sprung back to life, committing over $160 billion in new emergency loans to nations such as Hungary, Iceland, Pakistan, and Ukraine. Following the US Treasury's suggestion, the G20 pledged to triple the Fund's lending capacity to $750 billion, and it was asked to manage the wide-ranging Pittsburgh balanced-growth agenda.
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