Imf Support And Crisis Prevention

Author : Mr.Juan Zalduendo,Mr.Jun Il Kim,Mr.Bikas Joshi,Mr.Atish R. Ghosh,Ms.Uma Ramakrishnan,Mr.Alun H. Thomas
Publisher : International Monetary Fund
Page : 41 pages
File Size : 45,8 Mb
Release : 2008-05-16
Category : Business & Economics
ISBN : 9781589067097

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IMF Support and Crisis Prevention by Mr.Juan Zalduendo,Mr.Jun Il Kim,Mr.Bikas Joshi,Mr.Atish R. Ghosh,Ms.Uma Ramakrishnan,Mr.Alun H. Thomas Pdf

This paper examines the various roles of IMF financing in crisis prevention. Emerging market economies that experienced financial crises in the past have been subject to enormous economic and social costs, highlighting the importance of crisis prevention. While the main defense against a crisis lies in a country’s own policies and institutional framework, the IMF can contribute to these efforts through its surveillance activities, provision of technical assistance, and promotion of standards and codes. But the IMF may be able to contribute to crisis prevention more directly by providing contingent financial support. This paper explores the theoretical basis of, and empirical evidence for, possible “crisis prevention programs.”

Author : Mr.Juan Zalduendo,Ms.Uma Ramakrishnan
Publisher : INTERNATIONAL MONETARY FUND
Page : 0 pages
File Size : 44,6 Mb
Release : 2006-03-01
Category : Business & Economics
ISBN : 1451863357

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The Role of IMF Support in Crisis Prevention by Mr.Juan Zalduendo,Ms.Uma Ramakrishnan Pdf

This paper examines the role of IMF-supported programs in crisis prevention; specifically, whether, conditional on an episode of intense market pressures, IMF financial support helps prevent a capital account crisis from developing and, if so, through what channels. In doing so, the paper distinguishes between the seal of approval inherent in IMF support and its financing, evaluates the interaction of IMF support with economic policies, and assesses whether IMF financing has a different impact on the likelihood of a crisis than other forms of liquidity. The main result is that IMF financing helps prevent crises through the liquidity provided (i.e., money matters). However, since the effect holds even after controlling for (gross) foreign exchange reserves, stronger policies and the seal of approval under an IMFsupported program must also play a role. Finally, the results suggest that IMF financing as a crisis prevention tool is most effective for an intermediate range of economic fundamentals.

Author : Jun Il Kim
Publisher : International Monetary Fund
Page : 44 pages
File Size : 54,9 Mb
Release : 2006-06
Category : Business & Economics
ISBN : UCSD:31822034387944

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IMF-Supported Programs and Crisis Prevention: An Analytical Framework by Jun Il Kim Pdf

This paper presents an analytical framework for considering the role of IMF-supported programs in preventing crises, particularly capital account crises. The model builds upon the global games framework to establish a unique relationship between the crisis probability and the parameters of the program, which is assumed to be negotiated between the IMF and the member country, taking explicit account of each party's interests. In the model, from the perspective of the borrowing country, IMF financing and policy adjustment are (perfect) substitutes inasmuch as they both contribute to the country's liquidity and thus reduce the likelihood of a crisis. In equilibrium, however, IMF financing promotes stronger policies, implying that financing and adjustment are strong complements in crisis prevention. Conditionality plays a crucial role in sustaining the program, providing mutual assurances-to the member country that, if it undertakes the agreed policies, financing will indeed be forthcoming, and to the IMF that the country will implement the agreed policies as the IMF disburses its resources. The model helps explain how liquidity crises may come about, how IMF support can reduce the likelihood of a crisis by providing liquidity and sustaining stronger policies, and why the observed mix between financing and adjustment may vary across programs.

Author : Uma Ramakrishnan,Juan Zalduendo
Publisher : International Monetary Fund
Page : 38 pages
File Size : 54,7 Mb
Release : 2006
Category : Capital market
ISBN : UCSD:31822034373902

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The Role of IMF Support in Crisis Prevention by Uma Ramakrishnan,Juan Zalduendo Pdf

This paper examines the role of IMF-supported programs in crisis prevention; specifically, whether, conditional on an episode of intense market pressures, IMF financial support helps prevent a capital account crisis from developing and, if so, through what channels. In doing so, the paper distinguishes between the seal of approval inherent in IMF support and its financing, evaluates the interaction of IMF support with economic policies, and assesses whether IMF financing has a different impact on the likelihood of a crisis than other forms of liquidity. The main result is that IMF financing helps prevent crises through the liquidity provided (i.e., money matters). However, since the effect holds even after controlling for (gross) foreign exchange reserves, stronger policies and the seal of approval under an IMF supported program must also play a role. Finally, the results suggest that IMF financing as a crisis prevention tool is most effective for an intermediate range of economic fundamentals.

Author : International Monetary Fund. Policy Development and Review Dept.,International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
Page : 33 pages
File Size : 49,9 Mb
Release : 2006-03-23
Category : Business & Economics
ISBN : 9781498332859

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Fund-Supported Programs and Crisis Prevention by International Monetary Fund. Policy Development and Review Dept.,International Monetary Fund. Strategy, Policy, & Review Department Pdf

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.

Author : Roberto Marino,Ulrich Volz
Publisher : Unknown
Page : 38 pages
File Size : 52,5 Mb
Release : 2012
Category : Financial crises
ISBN : 3889855474

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A Critical Review of the IMF’s Tools for Crisis Prevention by Roberto Marino,Ulrich Volz Pdf

Author : Jonathan David Ostry,Jeromin Zettelmeyer
Publisher : INTERNATIONAL MONETARY FUND
Page : 22 pages
File Size : 51,8 Mb
Release : 2005-11-01
Category : Electronic
ISBN : 1451862253

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Strengthening IMF Crisis Prevention by Jonathan David Ostry,Jeromin Zettelmeyer Pdf

To better fulfill its crisis-prevention mandate, IMF surveillance needs to provide stronger incentives for countries to follow good policies and for markets to avoid boom-bust cycles in capital flows. To this end, surveillance should culminate in a summary public assessment of the quality of a country's policies and stipulate the actions needed to address shortcomings. A country's potential access to IMF credits should be linked to the quality of its policies in noncrisis periods in order to create stronger incentives for better policies and reduce incentives for capital to flow where it cannot be used in socially beneficial ways.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 43 pages
File Size : 40,5 Mb
Release : 2010-04-02
Category : Business & Economics
ISBN : 9781498337892

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Exiting from Crisis Intervention Policies by International Monetary Fund Pdf

This paper identifies broad principles for exiting from extraordinary and unprecedented crisis-related intervention policies implemented by countries across the globe following the onset of the crisis in the summer of 2007. It responds to the requests of the IMFC and the Board to make Fund advice and views on exiting from crisis-related intervention measures more concrete. Drawing on previous and ongoing work by staff, it mostly focuses on medium and large advanced and emerging market economies, in which interventions have been more substantial.

Author : Ralph C. Bryant
Publisher : Rowman & Littlefield
Page : 184 pages
File Size : 43,7 Mb
Release : 2004-12-17
Category : Business & Economics
ISBN : 0815797575

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Crisis Prevention and Prosperity Management for the World Economy by Ralph C. Bryant Pdf

Turbulent Waters: Cross-Border Finance and International Governance advocates faster progress in reforming the international financial system. Its most important theme is the need for national governments and international organizations to upgrade their collective efforts at crisis prevention and prosperity management. The core of such efforts is the supranational surveillance of cross-border "traffic regulations" and the cooperative monitoring of nations' macroeconomic, exchange rate, and balance-of-payments policies. Concurrently, governments should streamline and strengthen the intermediation of intergovernmental lending for the liability financing of payments deficits through the International Monetary Fund. This essay gives detailed analysis supporting these conclusions and provides more technical discussion of the incremental policy measures needed to strengthen these collective efforts.

Author : Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 670 pages
File Size : 44,5 Mb
Release : 2014-02-19
Category : Business & Economics
ISBN : 9781475543407

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Financial Crises by Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia Pdf

The lingering effects of the economic crisis are still visible—this shows a clear need to improve our understanding of financial crises. This book surveys a wide range of crises, including banking, balance of payments, and sovereign debt crises. It begins with an overview of the various types of crises and introduces a comprehensive database of crises. Broad lessons on crisis prevention and management, as well as the short-term economic effects of crises, recessions, and recoveries, are discussed.

Author : International Monetary Fund. Finance Dept.,International Monetary Fund. Legal Dept.,International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
Page : 32 pages
File Size : 51,6 Mb
Release : 2009-12-01
Category : Business & Economics
ISBN : 9781498336406

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Review of the Adequacy of and Options for Supplementing Fund Resources by International Monetary Fund. Finance Dept.,International Monetary Fund. Legal Dept.,International Monetary Fund. Strategy, Policy, & Review Department Pdf

This review discusses the potential scale of a possible increase, as well as modalities that would facilitate a prompt increase in the Fund’s resources should the need for additional resources be agreed. While a permanent increase in Fund resources has traditionally been achieved through an increase in quotas, borrowing has often been used to bridge to a general quota increase given the substantial time involved in the latter undertaking. At a time of crisis, the case for such an approach is even stronger. The precise design and scope of any such borrowing would need to be considered in consultation with potential creditors, and with careful attention to the broader implications for the Fund’s finances.

Author : Charles Goodhart,Gerhard Illing
Publisher : OUP Oxford
Page : 570 pages
File Size : 45,5 Mb
Release : 2002-01-17
Category : Electronic
ISBN : 9780191588600

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Financial Crises, Contagion, and the Lender of Last Resort : A Reader by Charles Goodhart,Gerhard Illing Pdf

Author : International Monetary Fund. Legal Dept.,International Monetary Fund. Monetary and Capital Markets Department,International Monetary Fund. Research Dept.,International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
Page : 48 pages
File Size : 47,7 Mb
Release : 2009-06-02
Category : Business & Economics
ISBN : 9781498336314

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Review of Fund Facilities-Analytical Basis for Fund Lending and Reform Options by International Monetary Fund. Legal Dept.,International Monetary Fund. Monetary and Capital Markets Department,International Monetary Fund. Research Dept.,International Monetary Fund. Strategy, Policy, & Review Department Pdf

In the context of the ongoing review of Fund facilities, this paper examines the analytical basis for Fund lending in emerging market countries and provides a broad-ranging perspective for reforming the General Resources Account (GRA) lending toolkit. The Fund’s important lending role in crisis prevention and resolution is buttressed by its unique characteristics: (i) its ability as a nonatomistic lender to provide large-scale financing and reduce the likelihood of a run by private creditors; (ii) its ability as a cooperative institution with near-universal membership to agree conditionality with members, thus providing national authorities with a policy commitment tool to underpin confidence and catalyze private lending; and (iii) its de facto preferred creditor status, which allows it to provide crisis financing when private creditors may be reluctant to lend.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 42 pages
File Size : 48,5 Mb
Release : 2010-08-26
Category : Business & Economics
ISBN : 9781498336949

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The IMF-FSB Early Warning Exercise - Design and Methodological Toolkit by International Monetary Fund Pdf

The Early Warning Exercise (EWE) draws together a combination of analytical techniques, practical experience, seasoned judgment and unique databases in order to assess the potential consequences associated with economic and financial tail risks. There are several key features of the exercise. First, the exercise aims to help prevent the occurrence of financial crises and to limit their potential damage, not to predict the timing of crises. Second, coverage is fairly comprehensive, including both advanced and emerging economies. Third, the EWE is based on rigorous analysis and cutting-edge techniques, but it uses a holistic approach, drawing also various other tools rather than relying on a single crisis model. Fourth, it combines empirical analysis with forward-looking thinking, based on inputs from key policymakers and academics, in-depth real-world knowledge from practitioners, and seasoned judgment from IMF experts. The primary purpose of the EWE is to identify as early as possible the buildup of underlying vulnerabilities that predispose a system to a crisis, so that corrective policies can be implemented and contingency plans put in place.

Author : Maurice Obstfeld,Dongchul Cho,Andrew Mason
Publisher : Edward Elgar Publishing
Page : 291 pages
File Size : 44,6 Mb
Release : 2012-01-01
Category : Business & Economics
ISBN : 9781781006306

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Global Economic Crisis by Maurice Obstfeld,Dongchul Cho,Andrew Mason Pdf

In 2008, the global economy experienced the most severe crash since World War II. A sharp collapse in international trade followed, leaving no country on the globe immune to a sequence of economic shocks. This timely book explores many of the key issues raised in the wake of the global economic crisis and provides an in-depth analysis of crisis transmission to emerging markets. The expert contributors compare the recent crisis with earlier crises, explore international aspects of the crisis from the perspectives of markets and trade, and examine macroeconomic policy responses. In so doing, they address important questions including: How did this crisis differ from those suffered previously? How and why did flaws in financial markets contribute to the crisis? How important were global imbalances and global overheating in explaining the global meltdown? Did different pre-crisis fundamentals generate different post-crisis performances? And, how severe were the economic shocks to countries such as Korea and other emerging economies? Academics, students and policymakers in the fields of economics, international economics, finance money and banking and Asian studies will find this book to be a thought-provoking and stimulating read.