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Campaigners urge IMF to sell gold to provide debt relief

Graham Watson

12th October 2020

The Jubilee Debt Campaign is calling for the IMF to sell off some gold reserves to provide debt relief for poor countries during the coronavirus pandemic.

It is an interesting thought - global gold prices are high, and the demands being made on governments across the developing world are also severe, so would this make sense?

Of course, some would suggest that there's a moral hazard argument here, in that it would encourage countries not to be overly concerned about running up debt in future. However, does this really apply in the current circumstances?

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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