So after the second debacle in Argentina in less than a generation, it’s high time to ask how to refocus the IMF’s mandate for dealing with emerging-market debt crises. The only answer is to increase substantially the resources of international aid agencies (the IMF is a lender). But IMF staff know very well that countries with a history of serial default, such as Argentina and Venezuela, ride a slippery slope in debt markets. Are debt crises in Argentina and Turkey a global warning sign? For all its limitations, the Fund has greater competency than any other organisation to mitigate the costs of emerging-market debt crises, not least to the general population.

Source: The Guardian October 03, 2019 09:22 UTC