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In our last few classes we have focused on Jamaica and how its relationship with the IMF has greatly impacted Jamaica's economy. As we all know, Greece is in desperate need of economic help, which is why finance officials from all over the world have come together to decide on how to rescue Greece. But that is easier said than done. This article mostly explains that the IMF wants to change their original agreement with Greece, but Germany, the biggest contributor to the European Stability Mechanism (ESM) wants to keep the original policy.

I think it is interesting how the IMF's stance has varied between Jamaica and Greece. From what I understood from the movie, the IMF did not give Jamaica the time of day when it asked for a modification on its loan to make their economy improved and sustainable- their interest seemed more in making it a reliable market place for foreign exports. Greece, on the other hand, has exports that other rich consumer countries want (shoes, oil, and cars come to mind), so it gets greater consideration from the IMF. Since these consumer countries represent a significant portion of the voting power within the IMF, the interests of the IMF and of Germany are understandibly different: Germany wants its money back, and the other countries want Greece to reestablish a functioning economy so they can et their goodies. Side note: Germany has 6% of the voting power in the IMF, and the US has close to 17%, http://www.imf.org/external/np/sec/memdir/members.aspx

Great find, Michelle! So relevant to our Jamaica discussion.

In Tokyo the IMF called on the US and Europe to try and resolve their debt crisis. The IMF believes that debt in richer western countries is actually bad for developing countries and damages the world economy as a whole. It is also mentioned that Asia is the most dynamic region right now economically and that with the west falling behind Asia can't be expected to pull the economy. This addresses the debt crisis in all of the west not just greece and spain.

Very interesting article, Jasper, why would "The IMF believes that debt in richer western countries is actually bad for developing countries and damages the world economy as a whole?" I hope we get to discuss this in class

"https://youtu.be/YoIJPwfsbqg" useful excerpt on the IMF loans from two perspectives. FILM EXCERPT STARTS AROUND MINUTE 2:10

"https://youtu.be/YoIJPwfsbqg" useful excerpt on the IMF loans from two perspectives.

After the devaluing of the Chinese currency we now see exactly how much the Chinese economy has faltered- and who this effects.

I think the boom that was attributed to China's huge population has reached its near endpoint; the marginal output from each new worker is now so low (not contributing much) or negative (reducing productivity) that China's huge historic growth rate can only be further sustained by greater education and an increase in the human capital aspect.

It's interesting to look at China as a case study of a country of super rapid development and growth that has the ability to affect the global economy. The fact that China's growth is slowing down and stabilizing means that it is catching up to its earlier developed counterparts. Having read the cap and trade article first, I wonder how the policies of that sector (and the sector itself) will affect China's overall economy and to a more general extent the global economy. Will China's become like Germany? Who can say.

The International Monetary Fund warned on Tuesday of the large positions that mutual funds in the United States have built in high-yielding bonds issued by risky companies here and in emerging markets around the world. The warning comes at a time of increased nervousness about China and other emerging markets like Brazil.