The Center for Economic and Policy Research in Washington, D.C. claims that the IMF didn’t allow developing countries that were looking for loans to expand their deficits sufficiently. Would these countries have weathered the global recession better if they had obtained larger loans from the IMF?

The International Monetary Fund (IMF) reported that it acted effectively in combating the global recession, especially in Eastern Europe. The IMF made $163 billion available to developing countries. The IMF required countries with large deficits to cut spending or not increase it, but it urged the United States, Western European countries, and China to run deficits to stimulate their economies.