Sudden Stops and IMF-Supported Programs

Barry Eichengreen, Poonam Gupta and Ashoka Mody

No 12235, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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 on 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.

JEL-codes: F02 F32 F34 (search for similar items in EconPapers)
Date: 2006-05
New Economics Papers: this item is included in nep-acc, nep-cba and nep-fmk
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Published as Sudden Stops and IMF-Supported Programs , Barry Eichengreen, Poonam Gupta, Ashoka Mody. in Financial Markets Volatility and Performance in Emerging Markets , Edwards and Garcia. 2008
Published as Barry J. Eichengreen & Poonam Gupta & Ashoka Mody, 2006. "Sudden Stops and IMF-Supported Programs," IMF Working Papers, vol 06(101).

Downloads: (external link)
http://www.nber.org/papers/w12235.pdf (application/pdf)

Related works:
Chapter: Sudden Stops and IMF-Supported Programs (2008)
Working Paper: Sudden Stops and IMF-Supported Programs (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:12235

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w12235

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().