III Program Financing
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Mr. Ales Bulir
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Mrs. Marianne Schulze-Gattas
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Mr. Atish R. Ghosh
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Mr. Alex Mourmouras
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Mr. A. J Hamann
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https://orcid.org/0000-0002-6363-0398
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Mr. Timothy D. Lane
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Abstract

The magnitude and suddenness of the reversals of capital inflows that characterized capital account crises gave financing a particularly prominent role in IMF-supported programs designed in response to these crises. Despite exceptionally large official financing, some concerted private sector involvement, and the announcement of confidence-building measures, the catalytic effect of programs in reversing outflows failed to materialize, at least in the short run—necessitating unprogrammed and extraordinarily severe macroeconomic adjustment.

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