Response to Standard IMF Policy Prescription Do you think the standard IMF policy prescription of…

Response to Standard IMF Policy Prescription

 

Do you think the standard IMF policy prescription of tight monetary policy and reduced government spending are always appropriate for developing nations experiencing a currency crisis? How might the IMF change its approach? What would the implications be for international businesses? Answer Preview……………..

The tight monetary policies implemented by IMF requires nations to have high interest. In my own opinion, I think that the standard policy prescriptions of IMF on tightened monetary policies together with the reduced government spending tend to be essential in managing countries under currency crises. These tight monetary policies have succeeded in most of the developed nations across the globe.  The loans lend to countries by IMF has assisted them in keeping away from liquidity crisis. For example, it helped Mexico in the year 1982 and it has also in the recent past given loans to Cyprus and Mexico. In addition, the IMF loan policies have helped countries in servicing their rescheduled debts across the world (Hill, 2013). But there are some critics arguing that tight policies of micro economy that were recently imposed by IMF on the Asian financial crisis are not appropriate to nations that are not affected……………… APA 594 words Added to cart