Why Has the IMF Come in for Widespread Criticism for Its

question 88

Multiple Choice

Why has the IMF come in for widespread criticism for its handling of the Asian financial crisis?

• A)It refused to make loans to any of the countries whose currencies were under speculative attack.
• B)Its policies did not sufficiently punish speculators with losses, giving rise to moral hazard.
• C)Its policies led to unsustainably low interest rates in a number of Asian countries.
• D)Its policies failed to lead to sufficient hardship for citizens in a number of Asian countries, giving rise to moral hazard.

---

Definitions:

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Utilitarian Justice

A principle in ethics and economics that a decision should be made so as to maximize overall happiness and reduce suffering among all people affected by the decision.

John Stuart Mill

A British philosopher and economist, known for his contributions to liberalism, utilitarianism, and political economy.

Income Redistribution

The policy or practice of adjusting the distribution of income in a society to achieve social or economic objectives.