As China’s currency for international trade has steadily grown, some argue the renminbi could displace the dollar as the international reserve currency. Jeffrey Frankel examines these propositions by looking at how other international currencies established themselves.
While Greece has failed to meet the budget requirements mandated by the EU and the IMF, experts say eurozone leaders will likely continue to bailout the country because the costs of letting it go are far greater.
The GAB and NAB are credit arrangements between the IMF and a group of members and institutions to provide supplementary resources of up to SDR 34 billion (about US$50 billion) to the IMF to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system. Separately, Japan has agreed to lend the Fund up to US$100 billion (about SDR 68 billion) as a measure to help overcome the current global economic and financial crisis.
New IMF Managing Director Christine Lagarde has to move quickly to establish independence from the European authorities who got her the job, enhance the IMF's legitimacy, and display her ability to manage the fund, says CFR's Steven Dunaway.
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