TY  - BOOK
AU  - Ramakrishnan,Uma
AU  - Zalduendo,Juan
TI  - The Role of IMF Support in Crisis Prevention
T2  - IMF Working Papers; Working Paper
SN  - 1451863357 :
SN  - 1018-5941
PY  - 2006///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Capital Account Crisis
KW  - imf
KW  - Capital Outflows
KW  - Cluster Analysis
KW  - Comparative
KW  - Economic History: Financial Markets and Institutions: General
KW  - Exchange Rate
KW  - Argentina
KW  - Brazil
KW  - Bulgaria
KW  - Mexico
KW  - Turkey
N2  - 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
UR  - http://elibrary.imf.org/view/IMF001/07272-9781451863352/07272-9781451863352/07272-9781451863352.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451863352
ER  -