NYT: Choice of I.M.F. Critic Highlights Trump’s Reversal of Global Policy, Greece Included

A worker of a state hospital chants slogans behind a banner depicting International Monetary Fund (IMF) mission chief for Greece, Delia Velculescu, during an anti-austerity rally in Athens, Wednesday, March 15, 2017. (AP Photo/Yorgos Karahalis)

WASHINGTON – Adam Lerrick, a former investment banker and a visiting scholar at the right-leaning American Enterprise Institute, is set to get a chance to turn philosophy into policy, after the announcement last week that President Trump intended to nominate him as deputy under secretary of the Treasury for international finance, New York Times reports.

The selection of Mr. Lerrick, who is well known in global financial circles for his evangelical opposition to bailouts for banks, countries and investors, underscores how Mr. Trump’s economic team is turning to critics of global economic policy as it seeks to reverse decades of Washington consensus.

This notion of the I.M.F. as an overstaffed body of meddling economists too eager to bail out the next spendthrift government to come knocking on its door — be it South Korea, Brazil, Argentina or, ultimately, Greece — became a recurring theme for Mr. Lerrick in his critiques over the years.

It immediately caught the eye of Allan H. Meltzer, a top economist in the Reagan administration who hired Mr. Lerrick in 1999 to help him with a report, ordered by Congress, that examined the business models of the I.M.F., the World Bank and other international lending bodies supported by Washington.

“It’s corrupting to give money to countries like Greece that never reform; those are taxpayer monies the people who voted worked hard for,” Mr. Meltzer, now a professor at the Tepper Business School at Carnegie Mellon University, said in an interview last week. “If we bail out countries that do things that are not in the interest of their citizens, then we just get more of the same. Adam is the right man for this job.”

Read NYT’s full article: http://nyti.ms/2nKisxF