Publications

Policy Note 2010/3 | October 2010

Why the IMF Meetings Failed, and the Coming Capital Controls

The global financial breakdown is part of the price to be paid for the refusal of the Federal Reserve and Treasury to accept a prime axiom of banking: debts that cannot be paid, won’t be. These agencies tried to “save” the banking system from debt writedowns by keeping the debt overhead in place, while reinflating asset prices. In the face of the repayment burden that is shrinking the US economy, the Fed’s way of helping the banks “earn their way out of negative equity” actually provided opportunities for predatory finance, which led to excessive financial speculation. It is understandable that countries whose economies have been targeted by global speculators are seeking alternative arrangements. But it appears that these arrangements cannot be achieved via the International Monetary Fund or any other international forum in ways that US financial strategists will accept willingly.

Publication Highlight

Testimony
Statement of Senior Scholar L. Randall Wray to the House Budget Committee, US House of Representatives
Reexamining the Economic Costs of Debt
Author(s): L. Randall Wray, Yeva Nersisyan
November 2019

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