I have been a bit busy with finals week and the end of the semester. I’m surprised I have not seen much discussion of the proposed layoffs at the International Monetary Fund. In short, the IMF will face yearly deficits of 400 million dollars a year. So the director has proposed cutting around 15% of the Funds work force. Although it is unclear if part of this press release is to allow the IMF to sell off some of its gold reserves.
Why is the fund running deficits? Well as best I can tell it is making fewer loans with many developing countries now having their own sovereign wealth funds they no longer need the help of the IMF.