Restructuring, Default & Debt Reduction

[Brad DeLong]

>Brad DeLong wrote:
>
>>Meltzer seems to have forgotten that commitments are credible only 
>>if you actually have the resources to carry them out if you need 
>>to. If the IMF doesn't to have the resources--and I don't think it 
>>does--to carry out the Meltzer plan, then its guarantee will not be 
>>credible, and it has to buy them.
>
>According to its latest statement 
><http://www.imf.org/external/np/tre/liquid/2001/0401.HTM> the IMF 
>has about $100 billion in "net usable uncommitted resources," $43 
>billion available under the general agreement to borrow, and $27 
>billion in gold - $170 billion in all. How much do you reckon they 
>need?
>
>Doug

$500 billion? (They not only have to have enough, they have to have 
so much that everyone is sure they have enough.)

Brad DeLong