- Steven Phillips, and Timothy Lane
- Published Date:
- May 2002
© 2002 International Monetary Fund
IMF External Relations Department
Cover design and composition
Massoud Etemadi, Jack Federici, and the IMF Graphics Section
Published March 2002
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The Economic Issues series aims to make available to a broad readership of nonspecialists some of the economic research being produced on topical issues by IMF staff. The series draws mainly from IMF Working Papers, which are technical papers produced by IMF staff members and visiting scholars, as well as from policy-related research papers.
This Economic Issue is based on IMF Working Paper WP/00/168, Does IMF Financing Result in Moral Hazard?, October 2000. Citations for the studies reviewed are provided in the original paper which readers can purchase ($10.00) from the IMF Publication Services, or download from www.imf.org. Jacqueline Irving prepared the text for this pamphlet.
“Moral hazard remains a concern. Private institutions may be encouraged to lend and invest recklessly—or at least more than they should—by the belief that the Fund will ensure that their creditors can repay them.”
Anne Krueger, First Deputy Managing Director,
International Monetary Fund,
in an address to the National Economists’ Club,
American Enterprise Institute, Washington, D.C.