The IMF’s New Direction

Roughly one year ago, the global economic situation looked grim: a severe global recession, massive wealth destruction, and declines in trade and employment. But a disaster of “Great Depression” proportions was averted, thanks to unprecedented economic-policy coordination by governments around the world, with the IMF now set to help ensure that it continues.

WASHINGTON, DC – Roughly one year ago, the global economic situation looked grim: a severe global recession, sizeable wealth destruction, and declines in trade and employment. But a disaster of “Great Depression” proportions was averted, thanks to unprecedented economic-policy coordination by governments around the world. Continued cooperation, one hopes, will be the legacy of this crisis.

The global economy is now on a recovery path, albeit uneven, and financial conditions have improved substantially. Clouds of uncertainty linger, however, and there is much unfinished business.

Indeed, the work needed to build a more robust, stable, and safe global financial system has only just begun. Moreover, the recovery is not global, unemployment is still rising in most countries, global savings imbalances have not been addressed, and conditions in the worlds’ poorest states remain vulnerable. These issues have broad implications for global stability and peace. Remember, economic stability lays the groundwork for peace, while peace is a necessary precondition for trade and sustained economic growth.

We hope you're enjoying Project Syndicate.

To continue reading and receive unfettered access to all content, subscribe now.

Subscribe

or

Unlock additional commentaries for FREE by registering.

Register

Support High-Quality Commentary

For more than 25 years, Project Syndicate has been guided by a simple credo: All people deserve access to a broad range of views by the world's foremost leaders and thinkers on the issues, events, and forces shaping their lives. At a time of unprecedented uncertainty, that mission is more important than ever – and we remain committed to fulfilling it.

But there is no doubt that we, like so many other media organizations nowadays, are under growing strain. If you are in a position to support us, please subscribe now.

As a subscriber, you will enjoy unlimited access to our On Point suite of long reads, book reviews, and insider interviews; Big Picture topical collections; Say More contributor interviews; Opinion Has It podcast features; The Year Ahead magazine, the full PS archive, and much more. You will also directly support our mission of delivering the highest-quality commentary on the world's most pressing issues to as wide an audience as possible.

By helping us to build a truly open world of ideas, every PS subscriber makes a real difference. Thank you.

Subscribe Now

https://prosyn.org/Llvd4Du