Is It Time to End the IMF and WTO?

This year's Nobel Prize for Economics was co-won by Elinor Ostrom for her work showing that local solutions often work better than government regulation for solving problems as diverse as preventing over-fishing, conserving rainforests, and policing cities. Perhaps it is time to check whether local solutions can also work better with international trade.We are now in the second year of the worldwide Great Recession partly caused by the inaction of the International Monetary Fund (IMF) and the inadequacy of the World Trade Organization (WTO). The problem is that countries found ways to exploit international rules to their own advantage. As a result, these two institutions allowed huge imbalances in international trade and international cash flow to destabilize the economy of the United States. Perhaps it is time for these institutions to fade into the sunset.Primary Cause of the Great RecessionThe primary cause of the current Great Recession was the trade imbalances among countries. In...(Read Full Article)