Wow, there is no end to smartest-guy-in-the-room Larry Summer's bright ideas. It would appear that the whole purpose of this IMF hedge fund would be to ensure that there is no domestic political accountability whatsoever for speculating with national reserves -- brilliant! That's the way I read this excerpt from the article: "To counter their misplaced apprehension of risky assets, so they could earn a better return on reserves, developing nations require 'some form of legitimated international scrutiny and monitoring of central bank reserve investments,' Summers said. That opens a whole new opportunity for the IMF and the World Bank. They could create 'an international facility in which countries could invest their excess reserves *without taking domestic political responsibility* for the process of investment decision and ultimate result,' Summers said." [emphasis added.]
Carl