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The IMF's Unfinished Business

After long advocating policies that put the interest of private capital before those of emerging markets and developing countries, the International Monetary Fund has been recognizing the error of its ways. But if it really wants to get back to its core mission, it must reform its position on capital controls.

NEW YORK – The International Monetary Fund is showing promising signs of changing with the times. In addition to recognizing that climate change poses significant risks to financial stability, it has responded to the pandemic with a major new allocation of special drawing rights (the Fund’s reserve asset), while criticizing the G20’s inadequate framework for dealing with debt distress. Moreover, in a recent agreement with Argentina, the Fund has largely abandoned the kind of austerity programs that have long plagued its reputation, not to mention undercutting livelihoods around the world.