The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
This paper reviews adjustment in oil imports and domestic pricing policies affecting petroleum under Fund-supported programs. The adjustment of countries with Fund-supported programs (during 1980–82) following the two oil price shocks is compared with that of the nonprogram countries, to evaluate the impact of the Fund’s decision to emphasize adjustment after 1979–80 as opposed to providing more financing after 1973–74. The relatively stronger adjustment to the second oil price shock, by program countries underpinned by evidence of adoption of important petroleum pricing policies and support measures in a program context, provides evidence that the Fund contributed to the adjustment and energy conservation effort.