FEDERALhearing transcript

Congressional Hearing on the Role and Impact of the International Monetary Fund (IMF)

Original title: THE IMPACT OF THE INTERNATIONAL MONETARY FUND: ECONOMIC STABILITY OR MORAL HAZARD?

January 1, 2016

International Monetary Fund Economic Policy Financial Regulation U.S. Foreign Policy Taxpayer Liability

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The Frame

What this does

The hearing addresses the potential financial exposure of U.S. taxpayers, who fund over 17% of the IMF's resources, in the event of a major international financial default.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

U.S. Taxpayers

Taxpayers are financially exposed to potential losses if the IMF experiences a major default on its loans.

International Monetary Fund

The organization is the subject of congressional oversight regarding its lending policies and resource management.

What changed

Last recorded activity January 1, 2016.

What's next

Next step not available in the current record.

Summary

This document is a transcript of a 2015 House Subcommittee hearing examining the International Monetary Fund's (IMF) global financial role and the risks associated with U.S. financial contributions. Lawmakers and expert witnesses discussed whether IMF lending practices provide necessary economic stability or create '' by encouraging risky financial behavior.

Key Facts

The United States is the largest contributor to the IMF, providing over 17% of its total quota resources.
The IMF consists of 188 member countries.
The hearing was held on June 17, 2015, by the Subcommittee on Monetary Policy and Trade.
The subcommittee examined IMF activities including global financial surveillance, technical assistance, and lending.
The hearing focused on the concept of 'moral hazard' regarding IMF lending practices.
The subcommittee noted concerns regarding the IMF's history of 'bending the rules' regarding exceptional access to funds.

Frequently Asked Questions

What is the IMF?

The International Monetary Fund is an organization of 188 countries working to foster global monetary cooperation, secure financial stability, and facilitate international trade.

Why is the U.S. involved in the IMF?

The U.S. is the largest contributor to the IMF, which uses these funds to provide financial assistance and surveillance to member countries.

What is 'moral hazard' in this context?

It refers to the concern that IMF bailouts might encourage countries or investors to take excessive financial risks because they expect the IMF to intervene if a crisis occurs.

Why It Matters

The hearing addresses the potential financial exposure of U.S. taxpayers, who fund over 17% of the IMF's resources, in the event of a major international financial default.

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Focus on IMF Rule-Bending

The subcommittee explicitly highlighted concerns that the IMF has repeatedly bypassed its own rules regarding 'exceptional access' to funding.

International Monetary Fund

Connected Entities

personJohn B. Taylor“Witness, Professor of Economics at Stanford University”Map →

personBill Huizenga“Chairman of the Subcommittee on Monetary Policy and Trade”Map →

organizationInternational Monetary Fund“The primary subject of the hearing regarding global lending and stability”Map →

personClay Lowery“Witness, Vice President of Rock Creek Global Advisors LLC”Map →

personMeg Lundsager“Witness, Public Policy Fellow at Woodrow Wilson International Center for Scholar”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy50
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz15
Current news / social attention level

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