National governments have gone big. The IMF and World Bank need to do the same
The nations of the developed world have responded to the covid-19 crisis by supporting their domestic economies and financial systems in bold and unprecedented ways, and at a scale that would have been unimaginable three months ago.
In contrast, when the world’s finance and central bank governors convene virtually this week for the semiannual International Monetary Fund-World Bank meetings, there will be steps taken to fortify the international system, but nothing comparable to what countries are doing domestically.
Historians such as Charles Kindleberger have argued convincingly that it was a failure of international cooperation that made the Depression “great.” And even when there has been coordinated action in response to the crises that have come since, more often than not it has come after huge human cost.… Seguir leyendo »