IMF and World Economic Stability

Dr.T.V.Gopalakrishnan (Fort worth, Texas)
13 Sep, 2011 10:51 PM
It is good to hear that IMF has proposed a set of tools financial regulators could use to detect buildup of risks that can lead to financial crisis. The IMF being an international institution set up exclusively to help its members to come out of forex and balance of payment crisis and bring in some sort of economic stability world over has a major role to play to help resolve the European and U S economic crisis. It is time IMF comes out with an innovative approach taking the support of all member countries and its own gold and other reseves to come to the rescue of US economy in particular in finding a solution for its debt crisis. The economic scenario under globalisation and integration of world economies has undergone a sea change and it is time for IMF to review its own role in the changed scenario and work towards world economic stability using its command over the entire world. The role of gold reserves in ensuring world economic stability needs to be defined and IMF which has huge reserves of Gold should be in a position to bring the much needed economic stability through out the world by converting gold into productive assets and help the nations to work as per its directives till some semblence of economic order is achieved.Time has arrived for IMF to emerge as a world leader institution to look forward to by all member countries including advanced economies.Gold Reserves of various central banks of the world also needs to be put into productive use.

(This appeared in ET E Paper dated 13/09/11).