This one seems a no-brainer to me. The easiest and quickest way to create global liquidity and enable credit-starved emerging and developing countries to increase their spending is for the IMF to engineer a vast new SDR allocation. It can be done at the stroke of a pen, and it does not require the IMF to negotiate a program for every country that needs a loan.
Let's remember some basic facts. The U.S. fiscal stimulus will be a lot less effective if it is not accompanied by similar fiscal action elsewhere. Developing nations are severely limited in what they can do in this respect because they have little room for domestic borrowing. Serious fiscal stimulus requires that they have resort to external resources, of which there is a severe shortage at the moment (both because of the flight to quality and the borrowing that is going on in the developed world). The existing swap lines and the IMF's new short-term lending facility have had few takers, in part because no country wants to signal that they are (or may be) in trouble and running out of resources. A generalized SDR allocation--in return for a commitment to spend a share of these resources in pursuit of a globally coordinated fiscal stimulus--would give countries the cover needed to do what is good for them and for the rest of the world without suffering a reputational penalty.
The main objection to the creation of SDRs has always been that this would be inflationary. In the current environment, this is a plus rather than a minus. Inflationary, you say? Pile it on! That is exactly what the doctor ordered.
So if you want to reduce protectionist pressures in the U.S. and elsewhere while helping the developing countries get over a crisis that is not their doing, SDRs can be a large part of the solution. So I repeat my question: why don't we hear more about this?
UPDATE: I see that Montek Ahluwahlia has also called for an issue of SDRs, as has a group of economists around the University of Massachusetts at Amherst. Martin Wolf's otherwise excellent column today is mysteriously silent on this obvious remedy which would do much to advance his recommendations.
Very interesting, but can you please explain specifier about SDR and it's role in global economics. I know some issues from the economic field, but not in such level:) Thanks.
Weber Genesis Grill
Posted by: Account Deleted | July 08, 2011 at 04:35 PM
Great Article Dani. I couldnt agree more with you. I have been wondering for a long time why sdr's faded as well.
HCG diet plan
Posted by: Account Deleted | July 08, 2011 at 04:46 PM
I like these articles , democratic countries formulate policies are both team and the interests of the people of power
UK mobility
Posted by: Account Deleted | July 11, 2011 at 06:30 AM
Having a nightmare of a time putting together an economic report on SDRs for next weeks seminar. Thanks for the post, think I'm starting to get it.
IM Consultants
Posted by: Account Deleted | July 11, 2011 at 06:31 AM
This means that the U.S. would be legally required to oppose the new SDR allocation. U.S. support is required, since a SDR allocation requires 85% of votes. Not a bad idea in theory, but it doesn't work in practice.
Diploma of Graphic Design Sydney
Posted by: Account Deleted | July 20, 2011 at 01:57 AM
Many places and centers offer business and trade promotions to both buyers and supplier.What about the differences in skill intensities across industries? The job losses in the relatively unskilled-labor intensive battery industry should have little effect on the relatively skilled-labor intensive machinery
sexshop
sexyshop
sexshop online
alongador peniano
Posted by: Account Deleted | July 21, 2011 at 07:35 PM
Most blogger feels its one of the best. Indeed he is never wrong to think that there are several useful information he can find here. Data that he can use on his own blog. Clearly, this marvelous piece must be lauded and he is hoping to find more. This development is important for the people so he will be expecting more. Surely success is on its way.
regards PE Teacher Course
Posted by: Account Deleted | July 22, 2011 at 12:14 AM
I was checking constantly this blog and I am impressed! Extremely useful info particularly the first part. I care for such information much. I was seeking this certain info for a very long time. Thank you and best of luck.
Daniel
Posted by: Alamgir Alam Razu | July 24, 2011 at 10:23 AM
Functions easy-to-use interfaces to speedily execute the simple commands required to make, update, and run Android apps. Energy Machine.
Posted by: Amam587 | July 26, 2011 at 02:16 PM
Thanks for making such a cool project. I've been checking the site for the Windows version, but I never left a comment about it. I know you are working hard and doing it for free so you shouldn't feel rushed or anything.
Online Bookmarks
Posted by: Account Deleted | July 28, 2011 at 12:15 PM
Thanks for the posting.there is something very unique and enjoyable about.
http://www.worldpharmarx.com
Posted by: Account Deleted | July 30, 2011 at 05:52 AM
Extremely great post, really beneficial stuff. Never thought I’d find the facts I would like in this article. I’ve been looking all over the net for some time now and was starting to get irritated.
Social Bookmarks
Posted by: Account Deleted | July 30, 2011 at 04:47 PM
These were so good, and came together so quickly! It was an hour from when I started to when I could eat. Perfect study break. Thanks Deb, your recipes are getting me through finals week!
Cool Bookmarks
Posted by: Account Deleted | July 30, 2011 at 04:48 PM
I tried a melding of the two types of brownies: both cocoa and semi-sweet chocolate… and added bacon and sea salt. They were out of control.
I love your blog and find it fun when we’re cooking similar things.
dublin hotel booking
Posted by: Account Deleted | August 03, 2011 at 04:29 AM
wonderful post thanks for sharing ......
http://www.stockmeds.com/purchase/kamagra-online.aspx
Posted by: Account Deleted | August 11, 2011 at 11:19 AM
An excellent post. You have explained all about cancer in detail. There is nothing left to explain now. Thanks.
Isopure
Posted by: Account Deleted | August 12, 2011 at 07:56 AM
The article made sense but i just don't know what is SDRs stands for.
Philippine Girls
Posted by: Account Deleted | August 27, 2011 at 12:06 AM
Hahahaha, I love the comic. Maybe that's why web developers hates SEO. I was really wondering because I just read it yesterday, I mean the question why web developers hates SEO, I hadn't got the chance to read the answer.Swiss Gear Backpack I agree with your cartoon 100% ! Cheap Handbag
Posted by: D | September 01, 2011 at 10:04 PM
hey do u care to explain what do u mean by SDR... ? not everyone is that techie lol
laser treatment for acne
Posted by: Account Deleted | September 12, 2011 at 10:33 PM
This was na excellent discussion about SDR's - thanks!
Paul (aka: The Web Design Guy)
Posted by: AdvanceTo | September 27, 2011 at 04:06 AM
SDR's are old school. ETF's are much better!
http://homeremediescure.org
Posted by: gwggary | September 27, 2011 at 04:15 PM
Hi Dani. This is actually the first time I've heard about SDR. I hope you could write more article about this. Thanks for the info. revitol review
Posted by: Account Deleted | October 05, 2011 at 01:19 AM
Your stories and ideas are great! I must share this to my friends! I look forward for your future posts.. Great job! aetna medical insurance
Posted by: Account Deleted | October 05, 2011 at 12:54 PM
cool read!
arbor longboards
Posted by: Arik Davis | October 10, 2011 at 09:37 PM
Beneficial being visiting your web page again, its been months for me. kidney Home Remedy
Posted by: Tinnitustreat | October 15, 2011 at 02:31 PM
this is completely to the point and it is giving the full explanation of subject.thank you.
Telefonsex Frauen
Posted by: Account Deleted | October 27, 2011 at 10:22 PM
Really your blog is very interesting.... it contains great and unique information. I enjoyed to visiting your blog.
Regard:
http://www.stockmeds.com/purchase/brimonidine-tartrate-online.aspx
Posted by: Account Deleted | November 01, 2011 at 11:36 AM
Thanks for this info. I didn't know such thing.
tribute credit card
Posted by: Account Deleted | November 12, 2011 at 09:49 AM
The author thanks and success in the blog!
comprar viagra
Posted by: Account Deleted | November 13, 2011 at 08:38 PM
I agree that it would be possible "for the IMF to engineer a vast new SDR allocation". Long term global need would be the justification.
http://www.firstbirthdayshirts.com
Posted by: TV Wall Mounts | December 17, 2011 at 09:25 AM
I know this is really boring and you are skipping to the next comment, but I just wanted to throw you a big thanks you cleared up some things for me!Split Testing
Posted by: Marco Reyes | December 29, 2011 at 01:46 AM
i am looking for this info
http://www.comfortiscoupon.net
Posted by: Account Deleted | December 29, 2011 at 03:54 PM
The blog is to good and informative where i like to discuss about this in my blog thanks for sharing.
organic vitamins
Posted by: Account Deleted | January 02, 2012 at 02:50 AM
I’m satisfied by the way you brought out ideas. Thanks for sharing.
~^- organic supplements -^~
Posted by: Account Deleted | January 04, 2012 at 12:50 AM
A lot of interesting things found on your blogs, like the topic! viagra australia
Posted by: Account Deleted | January 19, 2012 at 12:47 AM
Informative post and really on to the subject.I want to gather more information about SDR and create a 1 perfect journal on it.And thanks for sharing this info.
-protein shake
Posted by: Account Deleted | February 02, 2012 at 07:39 AM
Surely, you are right with this point. I think all consumers will not make their criteria become real for shopping since there are lots of choices.
villa rental bali
Posted by: Villaresortid | February 15, 2012 at 10:24 PM
Thank you for the sensible critique. Me and my neighbor were just preparing to do some research about this. We got a grab a book from our local library but I think I learned more from this post. I am very glad to see such great information being shared freely out there.
ต่อเติมบ้าน
Posted by: Healthy 4 Lifes | May 18, 2012 at 03:03 AM
recover powerpoint file
Good Post.It's really helpful & interesting
Posted by: Account Deleted | May 23, 2012 at 04:17 AM
In South Korea Visit, Obama Visits Border and Warns North
PANMUNJOM, South Korea — President Obama warned North Korea on Sunday that its threats and provocations would only deepen its international isolation and jeopardize the resumption of American food aid, and he called on the North to scrap its plans to launch a satellite next month.
Squinting through binoculars from an observation post at the demilitarized zone between North and South Korea, Mr. Obama got a firsthand look at North Korea. The North, with a new leader in place, briefly tantalized the United States weeks ago by raising the possibility of ending the standoff over its nuclear program, only to resume its usual defiance with the recent satellite announcement.
http://www.bagscelineluggage.com
http://www.celinetoteshop.com
http://www.shoesrogervivier.com
http://www.manoloblahniks.net
Posted by: Account Deleted | May 31, 2012 at 12:30 AM
Great article and the question still goes unanswered. It just seems as if the rich countries do not want to help those that are less fortunate.
new york limousine service
Posted by: Account Deleted | June 08, 2012 at 09:36 AM
Most of us can think of other reforms to the international monetary system that we would like to see. But it is quite difficult to think of other reforms that promise equally profound benefits to the world and that demand so little in the way of change. SDR allocation involves merely making use of what already exists, not making big and difficult reforms. Yet grasping this opportunity offers the surest way of reducing the inconsistency in payments objectives that currently looks to be the biggest obstacle to a strong recovery in the global economy in the post-Lehman world.
Posted by: Account Deleted | June 20, 2012 at 09:09 PM
Awesome, Very interesting issue that after a very successful. Nicely written article good work ! Thanks for the great piece of sharing. Enjoy to read your write . Thanks a lot
Creating History Together With ArenaBetting Piala Eropa 2012 http://seotoolinfo.com/2012/06/creating-history-creating-history-together-with-arenabetting-piala-eropa-2012/
Agenliga Sebagai Agen Bola Online Untuk Euro 2012 http://seotoolinfo.com/2012/06/agenliga-agenliga-com-sebagai-agen-bola-online-untuk-euro-2012/
Posted by: Account Deleted | June 30, 2012 at 01:55 PM
Hiya, I'm really glad I've found this information. Nowadays bloggers publish only about gossip and internet stuff and this is really annoying. A good site with interesting content, that's what I need. Thank you for making this website, and I'll be visiting again
Posted by: Sumonk71 | August 03, 2012 at 03:19 PM
Wow.. Great News.
_________________
Laku.com belanja online grosir eceran murah dan aman
Posted by: Account Deleted | August 13, 2012 at 04:06 PM
Great Article Dani. I couldnt agree more with you. I have been wondering for a long time why sdr's faded as well carpet cleaning services in melbourne
Posted by: Calvin Brock | December 19, 2012 at 03:55 AM
So if you want to reduce protectionist pressures in the U.S. and elsewhere while helping the developing countries get over a crisis that is not their doing, SDRs can be a large part of the solution. anti hair loss
Posted by: Jerry John | December 31, 2012 at 02:24 AM