Reply #41: THE IMF DOESN'T BELIEVE IN NATIONAL SOVEREIGNTY, APPARENTLY [View All]

[Demeter]

...The IMF fund outlined a policy framework for advising economies on the best use of controls to stem surges in capital investments. The framework also lays the foundations for the Group of 20 industrial and developing nations as they devise a "code of conduct" on capital controls, a priority set by France, which leads the organization this year.

Some developing economies want the IMF's endorsement of their capital controls so they aren't penalized politically in the markets for adopting them.

"Many of the emerging markets feel they should be allowed to institute capital controls without being stigmatized for it," said Eswar Prasad, a senior fellow at the Brookings Institution and former head of the IMF's Financial Studies Division

The IMF doesn't levy penalties against countries with policies contrary to IMF guidance, but the stigma can be politically painful both domestically and internationally....

OH, YES, LET'S MEDDLE! LET'S CO-OPT THE STRONG LEADERS AND SMART HONEST ADVISORS WITH OUR CORPORATE-FRIENDLY "GUIDANCE"