Why does the International Monetary Fund (IMF)encourage liberalization in the face of a financial crisis?

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The IMF encourages liberalization in the face of a financial crisis because it leads to a more efficient allocation of resources. Liberalization involves removing barriers to trade and investment, which allows resources to flow more freely between countries and sectors. This can help to promote economic growth and stability in the long run. However, the short-term effects of liberalization can be painful, especially for workers in industries that are exposed to competition from abroad. To mitigate these effects, the IMF often recommends policies such as social safety nets, retraining programs, and targeted support for affected industries.

Why Does the International Monetary Fund (IMF)encourage Liberalization in the Face