IMF Stick Might not be as Effective in Europe

The International Monetary Fund has a strong reputation as a lender of last resort. But what happens when the lender can't possibly cover the bailout and is reduced to a monitoring entity? The answer is a tougher job for the IMF than what it has previously done in Asia and Latin America.

Mariano Rajoy the Spanish Prime Minister has taken IMF advice under consideration. Meaning he has listened to it, but has made clear even in the case of troika involvement he expects the Fund to be a monitor not to add to a list of already growing austerity demands.

The IMF has responded with various comments on its reports on Spain austerity measures. “Very ambitious goals” that will “likely be missed”