The Committee identifies three critical developments in the global economy with profound implications that require urgent changes at the IMF. This statement advances broad proposals to address these issues by creating an Emerging Markets Fund (EMF); modifying the G20 Common Framework to effectively differentiate across debt classes in EMDE debt restructurings; and empowering the IMF to refinance outstanding debts from failed programs.
Inflation has become a central feature of the global economy. In Latin America (aside from idiosyncratic cases such as Argentina and Venezuela, where high inflation rates have long been the norm), inflation began to rise the first half of 2021, at the same time it did in the US. The fact that rising inflation has been a synchronized global phenomenon reflects two main causes, both directly related to the Covid-19 pandemic and the associated policy response.