IMF Stick Might not be as Effective in Europe

The International Monetary Fund has a strong reputation as a lender of last resort. But what happens when the lender can’t possibly cover the bailout and is reduced to a monitoring entity? The answer is a tougher job for the IMF than what it has previously done in Asia and Latin America.

Mariano Rajoy the Spanish Prime Minister has taken IMF advice under consideration. Meaning he has listened to it, but has made clear even in the case of troika involvement he expects the Fund to be a monitor not to add to a list of already growing austerity demands.

The IMF has responded with various comments on its reports on Spain austerity measures. “Very ambitious goals” that will “likely be missed”

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza