Will IMF Be The World’s Central Bank?

IMF & Global Economy

First Published Published Date : October 7, 2010 ADawnJournal.com

Slow Global Economic RecoveryThe International Monetary Fund (IMF) says that the world’s economic recovery is underway but seems to be unbalanced and sluggish. Emerging and developing countries are recovering stronger and faster than developed countries.

Global Financial safety Net – To manage future financial crisis better, IMF plans to create a framework of global financial safety nets. The safety net would be a pool of money to provide some sort of credit line to those countries in need to cope with financial volatility and crisis. This is like – IMF will be working as a global central bank. However, Germany opposes IMF’s role as a global central bank. A Deutsche Bundesbank official said that it would create moral hazard for those who agree to provide unlimited, unconditional liquidity in financial crisis. During the Asian financial crisis, IMF did not approve an idea of creating an Asian Monetary Fund by Asian countries.

Canadian Building Permits Drop – Stats Canada reports that building permits in August dropped 9.2 per cent from July. The big chunk of drop came from non-residential sector. However, the residential sector increased by 2 per cent after declining for 4 months.

What’s Happening – A Test Project

Whenever I come across interesting news, events, stories, etc., I will be sharing them with my readers in mini blog posts.  This is a test project. Based on readers’ responses, I will decide to continue or discontinue later on. No links will be provided; if you would like to find out more on these events, please search on Google