Still, someone has kept his head. I'd like to expand this idea and obviate the need for an IMF altogether. Borrowers must allow foreign banks to operate within their borders and be able to purchase their domestic banks. The best way to reform a rotten financial system is to admit good, free-market bankers. Borrowers must subscribe to a new bankruptcy convention that would adopt laws similar to those in the United States and Europe.
Lenders have to know that they can seize assets in a default.
Right now, withholding cash is the best leverage for reform that we've got. The writer is a fellow at the American Enterprise Institute. Click here for an index of Articles .