Restructuring, Default & Debt Reduction

Brad DeLong delong at econ.Berkeley.EDU
Fri May 18 13:18:14 PDT 2001

>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
><> 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

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

Brad DeLong

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