The Role Of Imf Support In Crisis Prevention

Author : Mr.Juan Zalduendo,Ms.Uma Ramakrishnan
Publisher : INTERNATIONAL MONETARY FUND
Page : 0 pages
File Size : 44,9 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 : 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 : 55,6 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 : Jun Il Kim
Publisher : International Monetary Fund
Page : 44 pages
File Size : 50,5 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 : Roberto Marino,Ulrich Volz
Publisher : Unknown
Page : 38 pages
File Size : 50,7 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 : Uma Ramakrishnan,Juan Zalduendo
Publisher : International Monetary Fund
Page : 38 pages
File Size : 54,5 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 : 53,5 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 : Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 670 pages
File Size : 51,8 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 : Ms.Deniz O Igan,Hala Moussawi,Alexander F. Tieman,Ms.Aleksandra Zdzienicka,Mr.Giovanni Dell'Ariccia,Mr.Paolo Mauro
Publisher : International Monetary Fund
Page : 90 pages
File Size : 55,5 Mb
Release : 2019-07-30
Category : Business & Economics
ISBN : 9781513508337

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The Long Shadow of the Global Financial Crisis: Public Interventions in the Financial Sector by Ms.Deniz O Igan,Hala Moussawi,Alexander F. Tieman,Ms.Aleksandra Zdzienicka,Mr.Giovanni Dell'Ariccia,Mr.Paolo Mauro Pdf

We track direct public interventions and public holdings in 1,114 financial institutions over the period 2007–17 in 37 countries based on publicly available information. We use aggregate official data to validate this new dataset and estimate the fiscal impact of interventions, including the value of asset holdings remaining in state hands at end-2017. Direct public support to financial institutions amounted to $1.6 trillion ($3.5 trillion including guarantees), with larger amounts allocated to lower capitalized and less profitable banks. As of end-2017, only a few countries had fully divested the initial support they provided during the crisis. Public holdings were divested faster in better capitalized, more profitable, and more liquid banks, and in countries where the economy recovered faster. In countries where the government stake remained high relative to the initial intervention, private investment and credit growth were slower, financial access, depth, efficiency, and competition were worse, and financial stability improved less.

Author : Carl-Johan Lindgren,Charles Enoch,Leslie Teo
Publisher : Unknown
Page : 103 pages
File Size : 50,6 Mb
Release : 1999
Category : Business & Economics
ISBN : 1557758719

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Financial Sector Crisis and Restructuring by Carl-Johan Lindgren,Charles Enoch,Leslie Teo Pdf

An IMF paper reviewing the policy responses of Indonesia, Korea and Thailand to the 1997 Asian crisis, comparing the actions of these three countries with those of Malaysia and the Philippines. Although all judgements are still tentative, important lessons can be learned from the experiences of the last two years.

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 : 42,9 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 : Mr.Stijn Claessens,Mr.Ayhan Kose
Publisher : International Monetary Fund
Page : 66 pages
File Size : 50,5 Mb
Release : 2013-01-30
Category : Business & Economics
ISBN : 9781475561005

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Financial Crises Explanations, Types, and Implications by Mr.Stijn Claessens,Mr.Ayhan Kose Pdf

This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Author : Mr.Luc Laeven,Ms.Deniz Igan,Mr.Stijn Claessens,Mr.Giovanni Dell'Ariccia
Publisher : International Monetary Fund
Page : 42 pages
File Size : 55,7 Mb
Release : 2010-02-01
Category : Business & Economics
ISBN : 9781451963021

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Lessons and Policy Implications from the Global Financial Crisis by Mr.Luc Laeven,Ms.Deniz Igan,Mr.Stijn Claessens,Mr.Giovanni Dell'Ariccia Pdf

The ongoing global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The crisis has brought to light a number of deficiencies in financial regulation and architecture, particularly in the treatment of systemically important financial institutions, the assessments of systemic risks and vulnerabilities, and the resolution of financial institutions. The global nature of the financial crisis has made clear that financially integrated markets, while offering many benefits, can also pose significant risks, with large real economic consequences. Deep reforms are therefore needed to the international financial architecture to safeguard the stability of an increasingly financially integrated world.

Author : Mr.Charalambos G. Tsangarides,Mr.Carlo Cottarelli,Mr.Atish R. Ghosh,Mr.Gian Milesi-Ferretti
Publisher : International Monetary Fund
Page : 352 pages
File Size : 44,5 Mb
Release : 2008-09-08
Category : Business & Economics
ISBN : 9781589067288

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Exchange Rate Analysis in Support of IMF Surveillance by Mr.Charalambos G. Tsangarides,Mr.Carlo Cottarelli,Mr.Atish R. Ghosh,Mr.Gian Milesi-Ferretti Pdf

Exchange rate analysis lies at the center of the IMF's surveillance mandate and policy advice, as well as in the design of IMF-supported programs, and IMF staff are called upon to analyze a wide variety of exchange rate issues in various member countries, both small and large, from the least economically developed to the most advanced, and from those whose currencies circulate only locally to those whose currencies are of global importance. Each year, IMF staff produce dozens of studies on exchange rate issues, some published by the IMF, others in various professional journals or books. This book aims to give a flavor of the topics the IMF staff typically examine under the broad rubric of exchange rate analysis, encompassing several topics: determination and impact of the real exchange rate, assessing competitiveness and the equilibrium real exchange rate in specific countries or country groups, and considerations in the choice of exchange rate regime.

Author : International Monetary Fund
Publisher : INTERNATIONAL MONETARY FUND
Page : 84 pages
File Size : 48,7 Mb
Release : 2009-09-24
Category : Business & Economics
ISBN : 1589068793

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International Monetary Fund Annual Report 2009 by International Monetary Fund Pdf

The IMF's 2009 Annual Report chronicles the response of the Fund's Executive Board and staff to the global financial crisis and other events during financial year 2009, which covers the period from May 1, 2008, through April 30, 2009. The print version of the Report is available in eight languages (Arabic, Chinese, English, French, German, Japanese, Russian, and Spanish), along with a CD-ROM (available in English only) that includes the Report text and ancillary materials, including the Fund's Financial Statements for FY2009.

Author : S. Ali Abbas,Alex Pienkowski,Kenneth Rogoff
Publisher : Oxford University Press
Page : 288 pages
File Size : 44,6 Mb
Release : 2019-10-21
Category : Business & Economics
ISBN : 9780192591401

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Sovereign Debt by S. Ali Abbas,Alex Pienkowski,Kenneth Rogoff Pdf

The last time global sovereign debt reached the level seen today was at the end of the Second World War, and this shaped a generation of economic policymaking. International institutions were transformed, country policies were often draconian and distortive, and many crises ensued. By the early 1970s, when debt fell back to pre-war levels, the world was radically different. It is likely that changes of a similar magnitude -for better and for worse - will play out over coming decades. Sovereign Debt: A Guide for Economists and Practitioners is an attempt to build some structure around the issues of sovereign debt to help guide economists, practitioners and policymakers through this complicated, but not intractable, subject. Sovereign Debt brings together some of the world's leading researchers and specialists in sovereign debt to cover a range of sub-disciplines within this vast topic. It explores debt management with debt sustainability; debt reduction policies with crisis prevention policies; and the history with the conjuncture. It is a foundation text for all those interested in sovereign debt, with a particular focus real world examples and issues.