| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

Analysis/Comment Last Updated: May 23, 2011 - 8:05 AM

Dr. Peter Morici: European should head IMF
By Professor Peter Morici
May 20, 2011 - 1:02 AM

Email this article
 Printer friendly page
International Monetary Fund's Acting Managing Director John Lipsky enters his conference room for a regularly scheduled economic surveillance meeting with senior staff and management, May 18, 2011, at the IMF Headquarters in Washington, DC. The former banker is an American citizen and is due to retire in coming months. IMF Photograph/Stephen Jaffe

Lipsky said in a speech at the Annual Meeting of the Bretton Woods Committee, on Thursday: In many advanced economies, we are experiencing a moderate recovery. Unemployment remains stubbornly high in most of these countries, raising the risk of higher structural unemployment. Only in a few advanced economies that have improved their competitiveness through structural reforms, such as Germany, is growth notably above-trend, thus reducing the margin of excess capacity.

Dominique Strauss-Kahn was granted bail on Thursday by a judge in a New York court, after being formally charged with trying to rape a hotel maid. He had earlier resigned as the International Monetary Fund's boss.

Strauss-Kahn's lawyers said he was honourable and would not try to abscond. Prosecutors said he had "incentive to flee."

Supreme Court Justice Michael Obus imposed $1m cash bail and said there must be 24-hour home detention, with an armed guard and electronic monitoring. The judge said one armed guard must be available at all times, at Strauss-Kahn's expense, and the defendant must surrender all travel documents. In addition to the $1m cash bail, a $5m insurance bond would also apply.

An article in The New York Times today titled, At IMF, Men on Prowl and Women on Guard, says: "Some women avoid wearing skirts for fear of attracting unwanted attention. Others trade whispered tips about overly forward bosses. A 2008 internal review found few restraints on the conduct of senior managers, concluding that 'the absence of public ethics scandals seems to be more a consequence of luck than good planning and action.'”

Dr. Peter Morici: The debate over whether a European or Asian should lead the International Monetary Fund (IMF) involves more than symbolism. An Asian leader could be bad for free markets and the progress of the global economy.

After World War II, the World Bank was established to provide long-term financial and technical assistance to developing countries, and the IMF was created to manage a system of fixed exchange rates. Essentially, the dollar was pegged to gold and other currencies to the dollar. The Americans got the head of the World Bank and the Europeans the IMF.

With the demise of the fixed exchange rate system in the 1970s, the IMF mission evolved to providing short term loans to countries with sovereign debt issues—that is why it is currently involved in Greece’s debt problems—and advocating transparent, market determined exchange rates.

Too many Asian governments on too many occasions have flaunted the system of market determined exchange rates, and violated World Trade Organization rules against manipulating exchange rates to accomplish competitive advantages and trade surpluses—the WTO defers policing such abuses to the IMF. Notably abusers have included China, India and Japan, who constitute the lion share of Asian GDP.

Were the Asians permitted to capture the IMF bureaucracy, its role could easily morph into sustaining exchange rate relationships that greatly disadvantage U.S. and European growth. Slow growth caused by the global trade imbalances, created by undervalued Asian currencies, make worse sovereign debt problems in Europe and U.S. federal and state budget challenges.

Asian growth has been remarkable but it has come in some measure from Asian governments breaking the rules—now we should not put them in charge of enforcing those rules.

Changing the Guard at IMF: A look at how the IMF should regroup on the heels of the IMF sex scandal, with Robert Reich, UC Berkeley, and David Malpass, Encima Global:

Strauss-Kahn's Pension Shocker! Dominique Strauss-Kahn is expected to walk out of jail on a $1m bail. CNBC's Eamon Javers speculates 10% of that was put down - - "Trump change" next to what the disgraced Strauss-Kahn stands to make for the rest of his life:

Peter Morici,

Professor, Robert H. Smith School of Business, University of Maryland,

College Park, MD 20742-1815,

703 549 4338 Phone

703 618 4338 Cell Phone




Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Disastrous 44-year War on Drugs and ignoring the evidence
HSBC & Tax Evasion: France/ Belgium issued criminal charges; UK/ Ireland nothing
Analysis: Germany world's top surplus economy; UK tops deficit ranks
Facts do not always change minds - can even entrench misinformed
Finfacts changes from 2015
Facts of 2014: Guinness not Irish; 110 people own 35% of Russia's wealth
In defence of dissent and Ireland's nattering nabobs of negativism
Dreams of European Growth: France and Italy facing pre-euro economic problems
Globalization's new normal needs permanent underclass - Part 1
MH17 and Gaza: who is responsible?
Israel vs Palestine: Colonization set for major expansion
Aviva Ireland's 'fund' runs dry and life cover to die for
We wish Martin Shanahan - new IDA Ireland chief - well but...
Ireland as an Organised Hypocrisy is in lots of company
Dr Peter Morici: Friday’s US jobs report won’t alter Fed plans to raise interest rates
Own Goal: Could FIFA have picked worse World Cup hosts?
Ireland: Spin and spending will not save bewildered Coalition
Irish Government parties set for 2-year vote buying spending spree
European Parliament: Vote No. 1 for Diarmuid O'Flynn in Ireland South
Dr Peter Morici: US April jobs report may show 215,000 added in April
Dr Peter Morici: Hardly time to call Obamacare a success
Celtic Tiger RIP: Change in conservative Ireland six years after crash
Dr Peter Morici: Five things to know about the Fed’s obsession with inflation
In age of acronym/ Google, Trinity to rebrand as 'Trinity College, the University of Dublin’
Hoeness case part of ‘painful’ change for Swiss bankers
Dr Peter Morici: The Cold War was only on vacation
Dr Peter Morici: US economy drags on Obama's approval ratings; Don’t look for changes in Washington
Dr Peter Morici: Bitcoin debacle shatters the myth of virtual money
Dr Peter Morici: US Tax Reform: Eliminate the income tax and IRS altogether
Wealth threatens the simple life in Gstaad, Switzerland
Irish journalists get cash payouts over 'homophobic' defamation claim
Irish academics get lavish pension top-ups as private pensions struggle
Dr Peter Morici: Inequality is President Obama’s highest priority, but solutions are naive
The Finfacts Troika: Better times ahead and a hangover to forget?
Dr Peter Morici: Volcker Rule arrives with the hidden jewel in Dodd-Frank financial reforms
Ireland's toothless fiscal watchdog threatens to bark
Analysis: Germany's current account surplus - - Part 2
The end of western affluence?
Bono's hypocrisy on Africa, corporate tax avoidance in Ireland
France like Ireland is run for the benefit of the old