Cover IMF Working Papers
Buy Book in Print
Sudden Stops and IMF-Supported Programs
Author:
Mr. Barry J. Eichengreen null

Search for other papers by Mr. Barry J. Eichengreen in
Current site
Google Scholar Close
,
Mrs. Poonam Gupta
Search for other papers by Mrs. Poonam Gupta in
Current site
Google Scholar Close
, and
Mr. Ashoka Mody null

Search for other papers by Mr. Ashoka Mody in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2006: Issue 101
Language:
English
Publication Date:
01 Apr 2006
DOI:
https://doi.org/10.5089/9781451863611.001
ISBN:
9781451863611
ISSN:
1018-5941
Pages:
53
Keywords:
WP; IMF program; break; GDP; trade balance
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (269.7 KB) Download Epub
Could a high-access, quick-disbursing "insurance facility" in the IMF help to reduce the incidence of sharp interruptions in capital flows ("sudden stops")? We contribute to the debate around this question by analyzing the impact of conventional IMF-supported programs on the incidence of sudden stops. Correcting for the non-random assignment of programs, we find that sudden stops are fewer and generally less severe when an IMF arrangement exists and that this form of "insurance" works best for countries with strong fundamentals. In contrast there is no evidence that a Fund-supported program attenuates the output effects of capital account reversals if these nonetheless occur.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund