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The turmoil that followed was, if anything, harder on Healey than the IMF crisis.
Forget about the IMF crisis of 1976, sterling's Black Friday in 1992 and Margaret Thatcher's fight with Irish terrorism, let alone with the miners.
In British terms, it is immeasurably tougher than what we did after the IMF crisis in 1976 or after the ERM crisis in 1992.
He also feels strongly that the IMF crisis need never have happened if the Treasury had not double-counted some elements of public spending and been better at forecasting.
Moral hazard and IMF lendingIt would be hard to overstate the influence of the popular perception that IMF crisis loans are thinly disguised bail-outs, with the tab paid mainly by ordinary taxpayers in the industrialised world.
The mainstay of IMF crisis lending to emerging economies is the Stand-by Arrangement, which is designed for dealing with short-term balance-of-payments problems, but not necessarily with shortages of liquidity.
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And in his experience in emerging economy crises the former IMF economist, Simon Johnson, found that most crises were brought about by the same sort of corrupt insider risk taking and moral hazard that happened in the US under the 'Greenspan put'.
It was forced to accept help from other European countries and the International Monetary Fund (IMF) after the global financial crisis meant it could no longer afford to finance its debts.
WAKE-UP CALL The Clinton Administration and the International Monetary Fund (IMF) are treating the Asian currency crisis the way Civil War doctors treated wounded soldiers: operating with dirty, infection-spreading instruments.
It also was agreed that EU countries would provide up to 200 billion euros in bilateral loans to the International Monetary Fund (IMF) to help it tackle the crisis, with 150 billion euros of the total coming from the euro zone countries.
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