The Crisis Of The Bailout ( S )

1475 Words Jul 3rd, 2016 6 Pages
The Greek Bailout(s) submitted on Sunday, 26 June 2016, 10:51 AMmodified on Sunday, 26 June 2016, 3:48 PM

The International Monetary Fund’s “main goal is to ensure the stability of the international monetary and financial system. It helps resolve crises, and works with its member countries to promote growth and alleviate poverty” (Imforg, 2016). My research seems to point to the main failure of the IMF policies as pointing to the same issues faced by any bank – math vs. people. While its goals may be to help alleviate poverty, those same policies are what causes the patient to become sicker or possibly die from the cure. Economists attempt to apply the rigidity, demanding constraints, and unforgiving answers of mathematics to human nature.

This was summed up at the Brenton Woods conference by Walter Lippman, an American commentator, who said “…the language of monetary policy is understood by very few men in any country" (Globalization101org, 2016). Therefore, when a country asks for the IMF’s help, like a person going to the bank for a loan, their first step is a membership (Imforg, 2016). Once membership is granted, “The country must enact any legislation and take any other steps necessary to enable it to sign the Articles of Agreement” (Imforg, 2016). These Articles of Agreement create or align, in principle, a country’s monetary policy to match that of the IMF’s. The reason a country would want to go to a bank is the same as any individual or company, to help in…
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