While They Were Fighting . . .

This just goes to show how the ongoing political warfare in the US has sucked all the oxygen out of the room. The IMF has a new Managing Director and I didn't even notice it until just recently. Below is the statement by new IMF Director Kristalina Georgieva.

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"Ms. Kristalina Georgieva issued the following statement today after the Executive Board of the International Monetary Fund (IMF) selected her as the IMF’s next Managing Director—the 12th since the Fund’s inception in 1944—for a five-year term, starting on October 1:

“I am deeply honored to have been selected as Managing Director of the IMF and grateful for the trust that the Fund’s global membership and the Executive Board have placed in me. I want to pay tribute to my predecessor, Christine Lagarde, a great leader and a dear friend, whose vision and tireless work have contributed so much to the continued success of the Fund.

“The IMF is a unique institution with a great history and a world-class staff. I come as a firm believer in its mandate to help ensure the stability of the global economic and financial system through international cooperation. Indeed, in my view, the Fund’s role has never been more important.

“It is a huge responsibility to be at the helm of the IMF at a time when global economic growth continues to disappoint, trade tensions persist, and debt is at historically high levels. As I noted in my statement to the Executive Board, our immediate priority is to help countries minimize the risk of crises and be ready to cope with downturns. Yet, we should not lose sight of our long-term objective – to support sound monetary, fiscal and structural policies to build stronger economies and improve people’s lives. This means also dealing with issues like inequalities, climate risks and rapid technological change.

“For our readiness to act, safeguarding the Fund’s financial strength is essential, and so are enhancing its surveillance and capacity development efforts. Working with my team, my goal is to further strengthen the Fund by making it even more forward-looking and attentive to the needs of our members.

“I look forward to working with all our 189-member countries, the Executive Board and staff, and with all our partners in the years ahead.”

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My added comments: My first take looking at the background and statements from the new IMF Director is that it does not seem like things will change too much at the IMF from the Chrisitine Lagarde days. For now there is nothing coming out of the IMF that suggests major monetary system change is imminent.