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In: Economics

Assess the part played by the IMF in trying to resolve the euro crisis.

Assess the part played by the IMF in trying to resolve the euro crisis.

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Expert Solution

IMF was a part of troika which was formed with IMF, ECB, & EC.. From the initial only IMF has been supporting in euro crisis. The IMF entered into collaboration with the EU mainly to provide the technical expertise in and also to share with its European partners the lessons it learned from managing past crises.

This was one of the major source which provided support to euro zone.

IMF had its surveillance on the European financial system since the start of the crisis, with a focus on the role that the Fund played in the gradual identification of the bank-sovereign vicious circle and its acknowledgement by European policymakers in the period 2010-12.

It then analyses the sequence of IMF contributions to the elaboration of the policies now known as banking union.

IMF was giving financial-sector assistance for Greece (Stand-By Arrangement 2010-12), Ireland (Extended Arrangement 2010-13) and Portugal (Extended Arrangement 2011-14), as well as the IMF’s involvement in Spain (2012-14).

Without IMF support it woiuld be difficult to resolve the crisis. With the upper hand of IMF it was easier sail of trioka.

Rahul Sunny answered 1 year ago
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