IMF crisis detection might backfire

The International Monetary Fund (IMF) has launched a crisis detection plan as an effort to better prepare itself in face of adversity.   Former officials and an advisory group of academics state that this attempt will prove to be unworthy as current risks might be missed along the way.   The IMF has better equipped itself, using new strategies to identify major risk worldwide following the deluge of 2008 global financial crisis.   Also, the other challenge that the IMF faces today is the considerable amount of member countries, accounting to 188 in all. It will have to provide concrete arguments to influence them.   Anne Krueger, former IMF first deputy managing director and Paul Tucker who is the former deputy director of the Bank of England are the contributing authors in this report.   They believe that the IMF should focus more into listening, because policymakers have constraints that the IMF tends to bypass.   The report concluded with suggestions over incorporating financial elements in its macroeconomic analysis and to enhance communication with governments.   Source: Bloomberg
Priscilla Camryn By: Priscilla Camryn
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