Occasional Papers

IMF Support and Crisis Prevention

Author/Editor:

Atish R. Ghosh ; Juan Zalduendo ; Alun H. Thomas ; Jun I Kim ; Uma Ramakrishnan ; Bikas Joshi

Publication Date:

May 16, 2008

Electronic Access:

Link to Abstract

Summary:

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.”

Series:

Occasional Paper No. 2008/004

Subject:

Balance of payments Capital account crisis Central banks Crisis prevention Financial crises Financial statements International reserves Public financial management (PFM)

Notes:

Full text available in Spanish