Keeping Capital Flowing: The Role of the IMF

48 Pages Posted: 29 Oct 2004 Last revised: 10 Aug 2010

See all articles by Michael D. Bordo

Michael D. Bordo

Rutgers University, New Brunswick - Department of Economics; National Bureau of Economic Research (NBER)

Ashoka Mody

International Monetary Fund (IMF) - Research Department

Nienke Oomes

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2004

Abstract

In this paper, we examine the IMF's role in maintaining the access of emerging market economies to international capital markets. We find evidence that both macroeconomic aggregates and capital flows improve following the adoption of an IMF program, although they may initially deteriorate somewhat. Consistent with theoretical predictions and earlier empirical findings, we find that IMF programs are most successful in improving capital flows to countries with bad, but not very bad fundamentals. In such countries, IMF programs are also associated with improvements in the fundamentals themselves.

Suggested Citation

Bordo, Michael D. and Mody, Ashoka and Oomes, Nienke, Keeping Capital Flowing: The Role of the IMF (October 2004). NBER Working Paper No. w10834. Available at SSRN: https://ssrn.com/abstract=602721

Michael D. Bordo (Contact Author)

Rutgers University, New Brunswick - Department of Economics ( email )

New Brunswick, NJ
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ashoka Mody

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-9617 (Phone)
202-589-9617 (Fax)

HOME PAGE: http://www.amody.com

Nienke Oomes

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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