For a long time, the International Monetary Fund (IMF) has had its supporters and detractors. In this discussion, you will have the opportunity to consider some of the IMF’s actions and determine whether they were beneficial as well as ethical.
To help frame this discussion, consider the IMF’s actions in Greece. Greece spent a decade in economic turmoil starting in 2009. The IMF provided financial assistance to “bail out” Greece multiple times during the crisis. Their loans came with requirements that Greece needed to meet. Some argue that the IMF made the crisis much worse, whereas others feel the IMF provided timely support to Greece not long after the global financial crisis of 2008.
In your initial post, use the following questions to guide your responses:
- When should a government, economy, or country be bailed out, if ever? Justify your answer with specific examples and how the bailout or lack of bailout would impact the global economy and the future of globalization.
- Ideally, which countries or organizations would provide the economic support for a government that needs a bailout? Is the IMF the ideal organization to bail out a country?
- Is it ethical for the IMF to bail out countries that repeatedly make bad economic and fiscal decisions? Is it ethical for the IMF to have significant requirements attached to its loans?
- What lessons should be learned from the Greek debt crisis for countries with debt obligation issues and for organizations such as the IMF?
In your responses to two or more of your peers, address the following:
- The IMF is considering creating a digital currency. Assuming that we are in a world where there is a single digital currency, who would ideally create a global cryptocurrency? Would you trust the IMF to create one? Or would you prefer one created by a global bank such as JPMorgan Chase or one backed by a country?
- What are the ethical implications of cryptocurrency?