The International Monetary Fund (IMF) is giving world governments more money to spend, $650 billion, through its largest ever allocation of special drawing rights. Special Drawing Rights (SDRs) are an asset created by the IMF that holders can swap for real currency and spend as they please.
It could lead countries to print new money to swap for the SDRs and that would be inflationary. But the IMF says if the countries use the money wisely it could be a unique opportunity to combat the crisis. So what does it mean to use it wisely? I asked Danial Lacalle, the chief economist at the Tressis hedge fund managing $6 billion in assets.
