IMF should stay out of Europe

While Italy may never receive a jumbo IMF package, Europe seems determined to resolve its problems using other people’s money, argue Mario I Blejer and Eduardo Levy Yeyati

Why should the IMF do for Europe what Europe can but does not want to do for Italy? Why should international money be mobilised to pay for European governance failures?

A SHORT-LIVED rumour recently suggested that the International Monetary Fund was putting together a €600 billion ($803bn) package for Italy to buy its new government about 18 months to implement the necessary adjustment programme.