How Do IMF Economists Justify This?

[Juan Jose Barrios]

what is even funnier: a debtor country must at the same time, be a net
exporter of goods and services but also OF CAPITAL, since debt
(principal and interests) needs to be repaid....non sense, you are
right. This strategy worked for the Asian Tigers for a while, but then
export markets get saturated and their export prices fell, so they
needed other sources of revenues, i.e. more sophisticated products....

If you have not done it already, I suggest (sorry Doug!! :-))) to read
what Paul Davidson has to say on Global Financial Architecture...

Thomas Seay wrote:


> IMF encourages debtor countries to decrease imports
> and increase exports (devalue currency, produce for
> export, etc).  This might work in an individual case,
> but it would seem to be stupid when prescribed
> globally (who is going to import???)  What would an
> IMF economist reply to such a criticism?
>
> Thomas
>
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