Does the IMF help or hurt?: the effect of IMF programs on the likelihood and outcome of currency crises
We empirically analyze the effect of International Monetary Fund (IMF) involvement on the risk of entering a currency crisis and, respectively, the outcome of such a crisis. Specifically, we investigate whether countries with previous IMF intervention are more likely to experience currency crises. I...
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| Main Authors: | , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
2010
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| In: |
World development
Year: 2010, Volume: 38, Issue: 1, Pages: 1-18 |
| ISSN: | 1873-5991 |
| DOI: | 10.1016/j.worlddev.2009.05.007 |
| Subjects: | |
| Online Access: | Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.worlddev.2009.05.007 Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0305750X09001004 
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| Author Notes: | Axel Dreher and Stefanie Walter |
| Summary: | We empirically analyze the effect of International Monetary Fund (IMF) involvement on the risk of entering a currency crisis and, respectively, the outcome of such a crisis. Specifically, we investigate whether countries with previous IMF intervention are more likely to experience currency crises. In a second step, we analyze the IMF’s impact on a country’s decision to adjust the exchange rate, once a crisis occurs. We find that IMF involvement reduces the probability of a crisis. Once in a crisis, IMF programs significantly increase the probability that the authorities devalue the exchange rate. The amount of loans and compliance with conditionality have no impact. |
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| Item Description: | Available online 9 July 2009 Gesehen am 17.04.2023 |
| Physical Description: | Online Resource |
| ISSN: | 1873-5991 |
| DOI: | 10.1016/j.worlddev.2009.05.007 |