Keynes, the IMF, and the Future

IMF Blog, May 30, 2019

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Publication date: May 30, 2019
Author: Gita Bhatt
Occasion: Issue of Finance & Development marking the IMF’s 75th anniversary
Historical reference: Bretton Woods conference; post–World War II economic order; reference to the 44 delegates that created the institution

The IMF has modernized its toolkit to address new challenges:
- Tools for analyzing financial risks and external imbalances
- Engagement on income inequality, corruption, and climate change
Institutional characteristics noted:
- Universal membership and diverse staff
- Female head (Christine Lagarde)
Technological and geopolitical changes emphasized:
- New emerging powers and technologies linking countries and markets at light speed
- Growing economic and political nationalism, fraying of alliances, and sharply declining support for multilateralism

The issue solicits perspectives from leading thinkers on how the IMF should adapt:
- Martin Wolf, Mohamed El-Erian, and Adam Tooze: how the IMF must continue to change to face new realities and better serve its member countries
- Keyu Jin: foresees volatility as China integrates fully into global financial markets
- Pinelopi Goldberg: focuses on the uncertainties around trade
- Raghuram Rajan: discusses how best to manage growing flows of capital across borders
IMF Managing Director Christine Lagarde advocates a “new” multilateralism that:
- Puts people at the center of efforts
- Ensures governments and institutions work to attain common goals for a prosperous, inclusive, and sustainable future

Renewed commitment to global economic cooperation in response to nationalism and weakened multilateralism
Continued adaptation and innovation by the IMF to serve global economic harmony and member needs
Emphasis on inclusive and sustainable policy objectives centered on people

Source: IMFBlog post "Keynes, the IMF, and the Future" by Gita Bhatt, May 30, 2019