Catalyzing private capital flows to emerging markets has been an objective of the International Monetary Fund since at least the 1990s.1 The Fund provides public monitoring services and negotiates programs that enable borrowers to reveal their commitment to sound macroeconomic policies. In addition, its own lending may stabilize capital flows by providing bridge finance for creditworthy countries experiencing liquidity crises, the resolution of which may be difficult to coordinate for atomistic lenders.

Sixty Years After Bretton Woods