A few weeks ago, I postulated that Christine Lagarde was increasingly moving the IMF away from its position as 'enforcer' of orthodox neoclassical economic policy. I backed this up with three specific ways in which the IMF was becoming a change agent by taking a heterdox approach. This week, I have two more examples that demonstrate yet again that Christine Lagarde is radically changing the IMF's approach to economic policy.
The brief background here is that the International Monetary Fund has always been seen as the economic agent of creditor nations. It has always been seen as a tool through which developed economies force less developed economies to restructure in order for the developed economies to be able to extract as much bond principal as they can. This was certainly the role the...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.