US Finance Minister Asks IMF to Balance the Global Economy

JAKARTA -US Treasury Secretary Steven Mnuchin called on the International Monetary Fund (IMF) to help balance the global economy.

Because the IMF rebuked the US Government to take the wrong step in solving its trade problems.

Mnuchin said that global trade imbalances have tripled since the 1980s and 1990s and show no signs of shrinking.

“The IMF should take part in this issue, cast a stronger vote, and consistently record when there are those who use macroeconomics, foreign exchange and trade policies to gain unfair advantage,” Mnuchin said, as quoted by Bloomberg, Saturday (21 / 4/2018).

Mnuchin added that countries with trade surplus should try to balance trade and the IMF should be a more vocal voice.

In addition, Mnuchin still supports the IMF’s core tasks to promote increased employment, income and productivity through monetary stability and open trade.

“The IMF can not encourage growth, but it reinforces private sector activity, suspends the financial system, and enlivens the dynamism of the employment sector in order for the economy to expand,” he said.

As, Mnuchin’s comments are reaping much attention among US Government officials and the IMF itself. Because policy makers are still trying to ease trade tensions between the US and China.

In fact, the United States was one of the initiators, along with the British, in shaping the IMF during World War II. The purpose of establishing this monetary fund is to regulate the global monetary system and protect the world’s countries from the beggar-the-neighbor policy as a result of the Great Depression.