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The fund warns and encourages

BY  Martin Wolf / FT
The warning is that the world economy is weak and could get weaker if proper action is not taken. The encouragement is the belief that it can be strengthened if those with clout act.

In its relations with its most powerful clients, the International Monetary Fund possesses “the right to be consulted, the right to encourage and the right to warn”. Walter Bagehot, the great Victorian economic journalist, gave this description of...

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