Fund-Supported Programs and Crisis Prevention.

This paper examines the theoretical foundations for, and empirical evidence of, Fund support in preventing capital account crises. At a theoretical level, Fund supported programs can lower the crisis probability in two ways. First, such programs provide the member with additional external reserves,...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2006.
Series:Policy Papers; Policy Paper ; No. 2006/012
Online Access:Full text available on IMF
Description
Summary:This paper examines the theoretical foundations for, and empirical evidence of, Fund support in preventing capital account crises. At a theoretical level, Fund supported programs can lower the crisis probability in two ways. First, such programs provide the member with additional external reserves, making a run for the exit by private creditors less likely. Second, such programs induce and signal better economic policies, though this needs to be supported by conditionality.
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Physical Description:1 online resource (32 pages)
Format:Mode of access: Internet
ISSN:2663-3493
Access:Electronic access restricted to authorized BRAC University faculty, staff and students