Ethical Dilemma: One mission of the International Monetary Fund (IMF) is to help poor countries overcome economic crises by providing loans and policy advice. During the global financial crisis, many countries suffered corporate bankruptcies, collapsing economies, and political turmoil. These effects particularly hurt Ukraine, which requested massive loans and other financial assistance from the IMF. Note, however, that taxpayers in advanced economies generally foot the bill for IMF activities, which often run to billions of dollars. Critics argue the IMF rescues countries that fail to put in place robust regulatory systems and responsible fiscal and monetary policies. The critics assert that economic prosperity is best determined by market forces and free enterprise. They claim that reviving poor countries is too costly and discourages responsible behavior because if local officials know they can count on bailouts from wealthy countries, they are less likely to enact policies that ensure stable economic growth. Suppose you are a financial officer at the IMF. Where do you stand? Use the Ethical Framework in Chapter 4 and decide whether the IMF should bail out Ukraine.

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