Letter: IMF is no supercop

Sir,

I was correctly quoted in your articles “Can the IMF play supercop?” and “Throwing good money after bad” (IMF/World Bank issue), that the IMF plays a critical role as international lender of last resort. But the caption to my picture is 180 degrees off! I have never said that the IMF should be a banking super-regulator. Indeed, I have said just the opposite, that the IMF cannot be a supranational supervisor. Successful regulatory oversight requires a consistent and ongoing presence and the power to close institutions.