Lagarde, World War, United Nations discussed on Freakonomics



The imf spending fathers as lagarde has called them were the british economist john maynard keynes and the american treasury official harry dexter weight they wanted an institution that would promote a stable international monetary system and help create an economic network that would incentivize peace marla carry on financial conference pose on the hotel law these meetings are to us just after the second world war and everybody at the time food that it would be much better to have the multilateral dialogue rather than go to war in this goes back to britain woods yes yeah bretton woods new hampshire 1944 new hampshire delegates from forty four allied on associate countries arrived for the opening of the united nations monetary on financial conference in forty four countries deciding that talking sharing opening up was better than closing down and entering into war now most people who think about the imf which is probably not that many people on a daily basis but when we do we usually think about you in moments of fiscal crisis in some countries that we probably don't really know that much about maybe not even know where it is but obviously the imf does a lot more than that you or the socalled lender of last resort but also you monitor the economies of nation states around the world and you engage in what you call capacity development can you talk for just a moment about you know toggle ing between the crisis management and the kind of growth development the uh that the imf also dust yeah so the mission is about improving financial stability and prosperity as a result of that we are engaged in three lines of business the one that you mention first which is the one that we are best known for because it's more visible is the lending of lost result when those countries cannot finance or refinance themselves on the markets because they situation is is very bad and in that case we lend international community money in consideration for commitment on the part of that country that receives the loan to actually fix its public finances take some necessary measures to restore its financial stability and be able to yet again access markets so we.

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