FISHER proved himself to be a virtuous of macroeconomics, and his function at IMF allowed him to deepen this Knowledge. His essay 7 through 12 are good representation of this continuous research program that allowed him to understand and analyses the macroeconomic and the different stabilization policies . This set of paper respect the “orthodox” school of stabilization policy, that estimate that inflation his costly for the population, and that the elimination of fiscal deficit as well as the reduction of the inflation …show more content…
In his 16th essay he suggest to also act on human capital investment, labor market liberalization and agricultural market liberalization.
The IMF role are stated in the institution article of Agreement and are: promote international monetary cooperation, facilitate the expansion and balanced growth of international trade, promote exchange stability, assist in the establishment of a multilateral system of payment, give confidence to members by making the general resource of fund temporarily available to them, and shorten and lessen the degree of disequilibrium. But FISCHER express in his 6th essay the necessity of reforming IMF, as capital flows to emerging market are too volatile and expose emerging countries to repetitive large shock and crisis as the East Asian ones . The contagion in the system is also according to him out of proportion and the transition in the East Asian crisis but also in the Russian and Latin American case is a definite proof of that fact. For him those capital market with their inherent problems pose a general problem but the IMF is part of any solution. He demonstrate in the 1st essay that in most respect the IMF is an international lender of last resort and that the IMF provide technical and advisories support to those countries. Nonetheless he expressed his fear that private investors would assume