G20 Should Have No Faith in the IMF

It makes no sense for the G20 to use the IMF to distribute stimulus funds to developing countries without also demanding IMF reform. IMF loans are usually conditioned on pledges of fiscal restraint, the opposite of what job creation stimulus spending is about. If the G20 wants the make the IMF a tool for development, it must condition its money on the IMF changing the way it does business. Some developing and middle-income countries, despite their economic difficulties, are going to turn down money from the IMF. That’s a shame because they need help.