Greece and the IMF: The Realism of the Technocrats

Today’s news that the IMF is not prepared to put a fresh bailout package to the IMF board without debt relief amounts to a reclamation of independence and a restoration of a degree of good sense from the technocrats. The IMF, and Christine Lagarde, have understood that the legitimacy of the organization and its leadership now depends on taking a more realistic line.   In the end, even the creditors may benefit financially from debt relief, as argued by Jeffrey Sachs twenty six years ago.  Saving the creditors from themselves is after all one of the tasks of international economic governance.


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