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This paper evacuates the Literature on the lending programmes of the International Monetary Fund (IMF). The first section deals with the initiation of a Fund program, which has been shown to be influenced by political and institutional variables. A second focus of research analyses the design and implementation of Fund-supported polices, since many programmes are often not successfully completed. The third issue surveyed is the impact of IMF policies on the economy of the borrowing government. The effect of Fund programmes on private capital flows is also examined. Keywords: IMF programmes, Conditionality JEL Classifications: F3,01, INTRODUCTION In recent years, the activities of the International Monetary Fund (IMF) have drawn increased attention. The rise in the scrutiny of Fund activities is due in part to the [...]

IMF programs are designed to provide a temporary source of finance for countries with balance of payments disequilibria. Consequently, borrowing from the IMF should occur infrequently and be widely distributed among member countries. However, some countries are recurrent users of Fund resources. This paper investigates which variables account for multiple borrowings from the IMF. We use models of count data to examine the impact of the need for financing, domestic policies, external shocks, and structural and institutional factors on borrowings between 1980 and 1996. We find that recidivist borrowers have lower reserve holdings, larger current account deficits and capital outflows, lower but less volatile terms of trade, larger debt service and external debt ratios, lower investment rates and percapita income, and weak governance. JEL classification: F33; O19 Keywords: IMF; Fund programs

This article analyses the factors that determine the long-run real exchange rate in Argentina, Colombia and Mexico, distinguishing between real and nominal determinants. Cointegration analysis is utilised to establish that the real exchange rate has an equilibrium relationship with real variables (the terms of trade, capital flows, productivity, and government share of GDP) which excludes nominal variables (nominal exchange rate, money) and central bank intervention. Variance decompositions reveal that among the real variables that determine the real exchange rate, the terms of trade and productivity explain much of the variation in the real exchange rates. When nominal variables are included in the model, the nominal exchange rate accounts for most of the variation in the real exchange rates of all three countries. The impulse response functions are broadly consistent with theoretical predictions and shocks to the nominal variables have only transitory effects on the real exchange rate., I. INTRODUCTION Real exchange rates have fluctuated widely in many countries since the end of the Bretton Woods regime in 1973. Because real exchange rates have important effects on production, [...]

The link between output and money is examined under two separate conditions. In one, the relationship between the two variables was examined under fixed exchange rates, while in the other, it was examined under flexible rates. Using data from the US, the analysis revealed that both variables are cointegrated, indicating the possibility of long-run equilibriun relationships between internal and external variables.

The influence of changes in monetary variables on foreign and domestic sectors, central bank policy determinants and response to changes in foreign currency in India and Mexico were investigated. Variance decomposition, Granger-causality tests and functions of impulse response were used to investigate relationships among key economic variables. Results show that domestic monetary policy failed to control output in either country.

We investigate international investment income flows in 26 emerging market countries during the period of 1998–2015. Net investment income registered a deficit for this group of countries of between 2% and 3% of GDP during this period. This deficit has been dominated by payments on foreign direct investment liabilities, which is consistent with the change in the composition of the external liabilities of these countries. Our results indicate that both capital account and trade openness are associated with the deficits on direct investment income. In addition, there was a small deficit in portfolio investment income, which is affected by the development of domestic financial markets and investor protection. Other investments' income and the income from foreign exchange reserves have a negligible role in total investment income. [ABSTRACT FROM AUTHOR]

The Globalizers: The IMF, the World Bank, and Their Borrowers, Ngaire Woods (Ithaca, N.Y.: Cornell University Press, 2006), 264 pp., $29.95 cloth, $18.95 paper. The disputes over Paul Wolfowitz's tenure [...]

Abstract: We investigate the impact of foreign equity and debt on the occurrence of banking crises in 61 lower income and middle income economies during the 1984 to 2010 period. We also focus on the effects of domestic institutions on banking crises and whether they mitigate or exacerbate the impact of the external liabilities. We find that FDI liabilities lower the probability of a crisis, while debt liabilities increase their incidence. However, institutions that lower financial or political risk partially offset the impact of debt liabilities, as does government stability. A decrease in investment risk directly reduces the incidence of banking crises. [ABSTRACT FROM AUTHOR]

Studies of exchange market intervention usually examine the relationship between reserve fluctuations and the exchange rate. However, a more thorough examination of intervention should take place within the overall context of monetary policy activities. This article develops a framework for investigating the goals of foreign and domestic policy activities, which is then estimated with Canadian data from the 1971-1980 period. The results indicate that the different instruments of monetary policy are used to achieve a variety of goals, and that the usual distinction between domestic and foreign operations is misleading. (Reprinted by permission of the publisher.)