April 3, 2015
“Prices come down,” chanted rioters in Indonesia in May 1998. When the International Monetary Fund (IMF) stepped in to rescue Indonesia from near-bankruptcy, they demanded the following: privatization of state-owned enterprises, sharp cuts to government spending, and a tighter monetary policy. Unemployment worsened at the same time prices for essential goods such as fuel and food skyrocketed. Similar scenes could be found in Latin America, Africa and Eastern Europe as IMF remedies to the 1997 Asian financial crisisonly deepened economic woes.
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