IMF Must Better Spot Risks, Offer Liquidity, Strauss-Kahn Says |
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February 26. 2010
The International Monetary Fund must better detect risks that individual economies pose to the rest of the world and offer liquidity early during a financial crisis, taking over a role played by central banks, IMF Managing Director Dominique Strauss-Kahn said.
The International Monetary Fund must better detect risks that individual economies pose to the rest of the world and offer liquidity early during a financial crisis, taking over a role played by central banks, IMF Managing Director Dominique Strauss-Kahn said.
“Our mandate must cover the full range of macroeconomic and financial sector policies that bear on global stability in the modern world,” Strauss-Kahn said in the text of a speech he’s giving in Washington today. “And that, in many ways, is the bottom line: to strengthen the fund’s role as the guardian of systemic stability.”
Before the financial crisis, the IMF’s funds were declining and its member nations were questioning the Washington-based institution’s relevance. After rescuing economies from Pakistan to Hungary during the global turmoil, and countries more than tripled the lender’s coffers to $850 billion, Strauss-Kahn is trying to redefine its role as the economic recovery takes hold.
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