 The IMF and the Indonesian crisisStephen Grenville Bulletin of Indonesian Economic Studies, 2004, vol. 40, issue 1, 77-94 Abstract: Given the strong performance and resilience of the Indonesian economy over the previous three decades, the depth and duration of the 1997-98 crisis was unexpected. The IMF's initial policy prescription was in keeping with the nature of the crisis—characterised by a reversal of foreign capital inflows, interacting with a weak domestic financial sector. But this prescription would work only if there was a quick restoration of market confidence. This was not achieved, and indeed public disputation over the elements of policy undermined confidence. Additional policy elements were needed that would address the capital outflows more directly and resolve the banking collapse. There was a loss of policy cohesion between the Fund and the Indonesian authorities, and among the authorities themselves. Before alternative policies could be put in place, the political dimension became paramount. Date: 2004 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:bindes:v:40:y:2004:i:1:p:77-94 Ordering information: This journal article can be ordered from DOI: 10.1080/0007491042000205213 Access Statistics for this article Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir More articles in Bulletin of Indonesian Economic Studies from Taylor & Francis Journals |
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