Protection versus caution

Comments on Karen Maley “Lagarde rings a euro alarm bell”, 29/12/2011, Karen Maley http://www.businessspectator.com.au/bs.nsf/Article/Lagarde-Italy-bonds-euro-debt-crisis-ECB-banks-pd20111229-PYSUE?OpenDocument&src=sph&src=rot

Perhaps it is helpful that there should be a distinction between appropriate caution and inappropriate protection.

One cannot expect either national parliaments or government not o exercise necessary caution and prudent measures when there are real risks, no matter it involves other governments or private sectors.

But at the same time, there are powerful governments and parliaments that take highly inappropriate protectionist policies or measures.

The US and EU, unfortunately, are among those powerful ones.

Nevertheless, the IMF shouldn't ask nations for their blind supports of bailing out some national governments without appropriate rewards.

This is especially so that the IMF has generally been biased more in favour of rich countries and more harsh towards developing countries in its history.