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Dhonte, Pierre.

Conditionality as an Instrument of Borrower Credibility Pierre Dhonte. [electronic resource] / Pierre Dhonte. - Washington, D.C. : International Monetary Fund, 1997. - 1 online resource (18 p.) - IMF Policy Discussion Papers; Papers on Policy Analysis and Assessment ; No. 97/2 . - IMF Policy Discussion Papers; Papers on Policy Analysis and Assessment ; No. 97/2 .

Fund member countries that adopt market-friendly policies often encounter a credibility problem-market-friendly policies are not effective in stimulating private investment as long as there remains a significant risk of policy reversal. The root of this risk lies in the discretionary policy-making authority of governments. Committing to a program with the Fund, and endorsing its conditionality, is one instrument available to governments to overcome this difficulty. The paper develops this interpretation of conditionality and indicates some of its operational implications for Fund programs.

ISBN: 1451974426 : 10.00 USD

ISSN: 1934-7456

Standard No.: 10.5089/9781451974423.003 doi

Subjects--Topical Terms:
Conditionality/Credibility
Credit Rating
Credit Ratings
Debt
External Financing
Institutional Investor

Subjects--Geographic Terms:
Kenya