Silent Revolution

Silent Revolution

The International Monetary Fund 1979–1989

James M. Boughton

October 1, 2001
Ordering Information


Foreword (191KB PDF file)

Preface (191KB PDF file)

List of Abbreviations (191KB PDF file)

  1. The Silent Revolution (787KB PDF file)
       Revolution or Evolution?
       Leadership at the IMF
       At the Precipice of the 1980s
       Evolution and Revolution in the 1980s
       At the Brink of the 1990s
       Appendix: Chronology, 1979–89
  1. Revolutions in the International Monetary System
    1. On the Map: Making Surveillance Work (410KB PDF file)
         Implementing Article IV: The Principles of Surveillance
         Assessing Exchange Rate Levels and Policies
         Establishing Effective Procedures
         Reducing Exchange Restrictions
         Appendix: Principles and Procedures of Surveillance
    2. Seeking Symmetry: Article IV and the Largest Industrial Countries (253KB PDF file)
         United States
         United Kingdom
    3. Policy Cooperation: The Fund and the Group of Seven (1,027KB PDF file)
         "In His Personal Capacity": 1982–84
         Cooperation and Coordination: 1985–87
         Life After the Louvre: 1987–89
    4. Keeping Score: The World Economic Outlook (167KB PDF file)
         Evolution of the WEO Exercise
         Key Policy Issues in the WEO
         Forecasting Process
         Modeling the World Economy

  2. Revolutions in Managing International Debt
    1. Crisis and Strategy (177KB PDF file)
         Managing the Debt Crisis: A Summary of Part II
    2. The Mexican Crisis: No Mountain Too High? (342KB PDF file)
         Smoldering Embers, 1979–81
         Mounting Concerns: The 1981–82 Consultations
         The Crisis Erupts: August 1982
         Negotiating the Program: August–November 1982
         Commitment from Commercial Banks: November–
            December 1982
         Approval of the EFF Program: December 1982
         Completing the Package: January–March 1983
    3. The Crisis Erupts (296KB PDF file)
         Prelude: Crisis in Eastern Europe
         In Concert: Crisis in Latin America
    4. Containing the Crisis, 1983–85 (313KB PDF file)
         Debt Strategy Through 1985
    5. Growth, the Elusive Goal: 1985–87 (380KB PDF file)
         The Baker Plan
         Enhanced Surveillance
         Stand-By Arrangement with Mexico
         Brazil: From the Cruzado Plan to Default
         Argentina: After the Austral Plan
    6. Debt Denouement, 1987–89 (394KB PDF file)
         Toward Debt Relief: Turning the Titanic
         Pre-Brady Debt Relief: Two Case Studies
         The Brady Plan
         Debt Reduction Programs in the Fund
         Adjustment Without Relief: Argentina and Brazil
         Appendix: Fund Policy on Financing Assurances and Arrears
    7. Case by Case: A Retrospective on the Debt Strategy (95KB PDF file)
         Was the Debt Crisis One of Solvency and Not Liquidity?
         Did the IMF Serve the Interests of Banks and Not Its
            Member Countries?
         Did the IMF Recognize the Need for Debt Relief?
         Was the Debt Strategy Consistent with the IMF's Mandate?
         Was There Enough Coordination with the World Bank?
         Was the Adjustment Strategy Appropriate for Latin America?
         Should the IMF Have Been Willing to Write Down Its Claims?

  3. Revolutions in Structural Adjustment
    1. Lending for Adjustment and Growth (721KB PDF file)
         How Much Conditionality?
         Program Design Issues
         Growth-Oriented Adjustment?
         Evaluating the Success of Fund Programs
         Appendix: Conditionality Guidelines
    2. The IMF and the Poor: Soft Loans, Hard Adjustment (362KB PDF file)
         Closing Down the Trust Fund
         Structural Adjustment Facility
         Enhanced Structural Adjustment Facility
         Protecting the Poor
    3. Extended and Specialized Lending (275KB PDF file)
         Extended Fund Facility
         Compensatory and Contingency Financing
         Other Lending Arrangements
         Appendix I: The CFF Cereals Window
         Appendix II: Emergency Assistance for Natural Disasters
    4. Digging a Hole, Filling It In: Payments Arrears to the Fund (490KB PDF file)
         Digging the Hole: Loans That Went Bad
         Filling It In: Development of the Arrears Strategy
         Appendix: Rules and Decisions on Arrears to the Fund

  4. Evolution of the Institution
    1. Fund Finances: Balancing Demand and Supply (628KB PDF file)
         Quotas and the Size of the Fund
         Access Policies
         Borrowing by the Fund
         Sharing the Burden: Who Pays for the Fund?
         Appendix I: An Alternative Balance Sheet Presentation
         Appendix II: IMF Quotas, 1979–89
         Appendix III: Formulas for the Eighth General Review
            of Quotas
         Appendix IV: Policies on Enlarged Access
    2. Evolution of the SDR: Paper Gold or Paper Tiger? (672KB PDF file)
         Limited Role of the SDR
         Proposals for a Substitution Account
         SDR Allocations
         Valuing the SDR
         SDR Interest Rate
         Appendix: Principal Changes in the Valuation of the SDR
    3. Toward Universal Membership (264KB PDF file)
    4. Managing the Fund in a Changing World (436KB PDF file)
         Appendix: Concordat on Fund-Bank Collaboration

Index (175KB PDF file)