IMF Working Papers

The IMF Monetary Model At Forty

By J. J. Polak

April 1, 1997

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J. J. Polak The IMF Monetary Model At Forty, (USA: International Monetary Fund, 1997) accessed November 8, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

A model reflecting the monetary approach to the balance of payments was developed in the International Monetary Fund (IMF) in the 1950s. Its purpose was to integrate monetary, income, and balance of payments analysis, and it became the basis of the conditionality applied to IMF credits. Extremely simple, with primary focus on the balance of payments effects of credit creation by the banking system, the model has retained its usefulness for policy purposes over time, as it was adapted to changes in member countries’ priorities and in the international monetary system, in particular the disappearance of the par value system.

Subject: Credit, Currencies, Domestic credit, Exchange rates, Foreign exchange, Monetary base, Money

Keywords: Balance of payments result, Baltics, Credit, Credit creation, Currencies, Customer country, Deficit, Demand for money, Domestic credit, Eastern Europe, Econometric models, Europe, Excess demand, Exchange rates, Fund assistance, Fund program, Fund stand-by, IMF, Monetary approach to the balance of payments, Monetary base, Policy approach, Programming exercise, West Africa, WP

Publication Details

  • Pages:

    20

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1997/049

  • Stock No:

    WPIEA0491997

  • ISBN:

    9781451846805

  • ISSN:

    1018-5941

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