In your responses to two or more of your peers, address the following:

• The IMF is considering creating a digital currency. Assuming that we are in a world where there is a single digital currency, who would ideally build a global cryptocurrency? Would you trust the IMF to create one? Or would you prefer one created by a global bank such as JPMorgan Chase or one backed by a country?
• What are the ethical implications of cryptocurrency?

Write an answer for each peer

PEER 1:

In my opinion, government bailouts are ok in certain situations. Sometimes countries experience unexpected financial crisis, such as war, and need help. Countries that have strong economies and a high GDP should be the ones providing bailouts to other countries. Ethically, it is right for a country or organization to bailout a struggling country, but there should be a limit. Countries that continuously make poor financial decisions or don't attempt to pay back the loans should be barred from bailouts until they can pay back previous loans. Money isn't free and the IMF is right to have strict requirements on bailouts.

PEER 2:

I believe the IMF bailing out countries that make bad economic and fiscal decisions is ethical. I believe it is ethical because one of the purposes of them being founded was to "facilitate the expansion and balanced growth of international trade (Sanjyot, 2019)." However, I do feel it is kind of a gray area considering that aid is there for those who need it, but if they have a track record of not paying their debts, it could be difficult to get the payment back and have the money recirculate. I also believe that attaching conditions to the loan is ethical. The point is to stabilize the exchange rates and promote global trade through stabilizing the economies of countries that need help. In order to do this, certain changes must be made in order to achieve this and pay the loan back within the agreed upon time.

A country being bailed out under appropriate terms would be Ukraine. IMF provided a $1.4 billion package to Ukraine to assist them during the current war with Russia. The war has affected the supply chain globally and a lot of places are facing a food shortage. Providing aid helps to remedy the impacts. We can see prices of certain products return to normal after all the aid Ukraine has received from around the world.