Download This PaperThe IMF Approach to Economic Stabilization
42 Pages Posted: 15 Feb 2006
Date Written: July 1999
Abstract
This paper explains the IMF approach to economic stabilization. It argues that a Fund-supported program is a process, comprising six broadly defined phases, that evolves along a multiplicity of potential pathways. The paper discusses the three-pronged approach to stabilization at the core of all IMF-supported programs, stresses the iterative character of "financial programming," and explains the rationale for setting quantitative performance criteria for fiscal and monetary policy in IMF-supported arrangements. A main theme is that IMF-supported programs contain a great deal of flexibility to respond both to differences in circumstances and to changes in conditions in individual cases.
Keywords: IMF-supported programs economic stabilization quantitative approach
JEL Classification: E52 E61 F33 F34 F41
Suggested Citation: Suggested Citation
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