Reinventing IMF Global Role May Just Be In Time

(Reuters) – Reinventing the International Monetary Fund may have come just in time as world markets recoil amid rising inflation and interest rates, which look set to test new IMF powers to police the global economy.

On a visit on Tuesday to Australia, IMF Managing Director Rodrigo Rato warned that risks to the global economy had clearly increased, seen in falling equity markets, commodity prices and accompanying tightening of easy money.

Some economists believe the volatility could mean a forced rebalancing of the global economy may be underway — one that risks a messy unwinding of the large current account deficit in the United States and mounting surpluses in emerging Asia and oil-producing countries.
Reuters