IMF Support and Crisis Prevention

Author/Editor: Ghosh, Atish R. ; Joshi, Bikas ; Kim, Jun Il ; Ramakrishnan, Uma ; Thomas, Alun H. ; Zalduendo, Juan
Publication Date: May 16, 2008
Electronic Access: Link to Abstract

Electronic Access: Link to Table of Contents

Summary: This paper examines the various roles of IMF financing in crisis prevention. Emerging market economies that experienced financial crises in the past have been subject to enormous economic and social costs, highlighting the importance of crisis prevention. While the main defense against a crisis lies in a country’s own policies and institutional framework, the IMF can contribute to these efforts through its surveillance activities, provision of technical assistance, and promotion of standards and codes. But the IMF may be able to contribute to crisis prevention more directly by providing contingent financial support. This paper explores the theoretical basis of, and empirical evidence for, possible “crisis prevention programs.”
Series: Occasional Paper No. 262
Subject(s): Balance of payments assistance | Capital account | Crisis prevention | Cross country analysis | Emerging markets | Financial crisis | Foreign exchange reserves | Fund role | Fund-supported adjustment programs | Multilateral surveillance

Notes Full text available in Spanish
Publication Date: May 16, 2008
ISBN/ISSN: 978-1-58906-709-7 Format: Paper
Stock No: S262EA Pages: 33
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