IMF Support and Crisis Prevention

Occasional Papers, May 16, 2008

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IMF Support and Crisis Prevention

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Bibliographic details

• Authors: Atish R. Ghosh, Juan Zalduendo, Alun H. Thomas, Jun I Kim, Uma Ramakrishnan, Bikas Joshi
• Published: May 16, 2008
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781589067097.084

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.
• The main defense against a crisis lies in a country’s own policies and institutional framework.
• The IMF can contribute to crisis prevention through:
  • surveillance activities,
  • provision of technical assistance,
  • promotion of standards and codes.
• The IMF may be able to contribute more directly by providing contingent financial support.
• The paper explores the theoretical basis of, and empirical evidence for, possible “crisis prevention programs.”

Major themes and findings

• Crisis prevention is critical because past financial crises in emerging market economies led to enormous economic and social costs.
• IMF contributions to prevention include non-financial tools (surveillance, technical assistance, standards and codes) and potential direct financial tools (contingent financing).
• The paper evaluates both theoretical arguments and empirical evidence regarding crisis prevention programs.

Subject coverage and keywords

• Subjects: Balance of payments, Capital account crisis, Central banks, Crisis prevention, Financial crises, Financial statements, International reserves, Public financial management (PFM)
• Keywords: Africa, balance sheet weakness, Capital account crisis, crisis, Crisis prevention, East Asia, Financial statements, financing, IMF disbursement, IMF financing variable, IMF support, International reserves, market, OP, precautionary program

Content in this bundle

• IMF Support and Crisis Prevention -- Overview; IMF Occasional Paper 08/262; May 16 2008.
  • IMF Support and Crisis Prevention -- Overview; IMF Occasional Paper 08/262; May 16 2008. (Markdown version)
  • IMF Support and Crisis Prevention -- Overview; IMF Occasional Paper 08/262; May 16 2008. (PDF)