These arguments are not wholly convincing, however, not least because the Fund did offer mistaken policy advice to some transition economies. Among the most successful countries have been those which, although strongly reformist, ignored the IMF on important questions. Estonia, for instance, successfully reintroduced its pre-war currency, the kroon, in place of the rouble in 1992, when the IMF was still calling for a single currency from Tallinn to Tashkent. Still, the political and strategic arguments help to explain why economic considerations often became secondary. There have been economic miscalculations too.
Most people now agree, for instance, that defending fixed exchange rates for too long is a mistake.
But if the political role the two institutions are being asked to play is part of the problem, that needs to be addressed too. Such reforms, the authors say, would insulate the IMF from short-term political pressures, making its advice more credible and more effective. Pretending to be economic handmaidens while in fact being political social workers is a recipe for failure.