In a world where countries have unprecedented access to international capital flows, and where those who have borrowed from the IMF are doing everything they can to repay their loans early, some have argued that an ideal IMF should do no lending whatsoever. I certainly agree that the prime purpose of the IMF is not to make loans.
Not a sufficient condition because there is no empirical evidence to establish that the benefits of higher growth outweigh the costs of welfare loss associated with higher inflation. 55. Key to our collective national aspiration for sustained high economic growth is low and steady inflation.