Keeping Capital Flowing: The Role of the IMF
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Summary:
In this paper, we examine the IMF's role in maintaining the access of emerging market economies to international capital markets. We find evidence that both macroeconomic aggregates and capital flows improve following the adoption of an IMF-supported program, although they may initially deteriorate somewhat. Consistent with theoretical predictions and earlier empirical findings, we find that IMF-supported programs are most successful in improving capital flows to countries with bad, but not very bad fundamentals. In such countries, IMF-supported programs are also associated with improvements in the fundamentals themselves.
Series:
Working Paper No. 2004/197
Subject:
Capital flows Current account Current account deficits Emerging and frontier financial markets International capital markets
English
Publication Date:
October 1, 2004
ISBN/ISSN:
9781451860047/1018-5941
Stock No:
WPIEA1972004
Pages:
35
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