The IMF Monetary Model At Forty

Author/Editor:

J. J. Polak

Publication Date:

April 1, 1997

Electronic Access:

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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.

Series:

Working Paper No. 97/49

Subject:

Frequency:

semi-annual

English

Publication Date:

April 1, 1997

ISBN/ISSN:

9781451846805/1018-5941

Stock No:

WPIEA0491997

Format:

Paper

Pages:

20

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