IMF tries to put together a system of trade and currency rules in an effort to become the world's monetary regulator

It seems that the IMF is attempting to put together a system of global "rules" which would constrain governments actions in regards to currency manipulation and retaliation. However, this also means a possible system of handing over state sovereignty to an international body.

These kinds of things always start out innocuous and they turn into bureaucratic monstrosities. Via FT:

The International Monetary Fund last week revealed an attempt to put itself at the centre of the debate, releasing a study arguing for global rules to constrain governments’ use of capital controls. But observers doubt that it will broker a deal soon. “The IMF has made a pre-emptive grab for power without a clear idea of what it is asking for,” says Eswar Prasad, a former senior IMF official now at Cornell University.

The case for global rules is that one country’s actions can spill over to others. Last year’s rash of direct currency market intervention to slow speculative capital inflows, for example, proved self-perpetuating as country after country rushed to stop its own exchange rate being the only one to rise.


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