New IMF Lending Facilities and Financial Stability in Emerging Markets

Jari John () and Tobias Knedlik
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Jari John: Martin Luther University, Universitätsplatz 10, 06108 Halle-Wittenberg, Germany

Economic Analysis and Policy, 2011, vol. 41, issue 2, 225-238

Abstract: In the light of the current global financial and economic crisis, the International Monetary Fund (IMF) has undertaken some major reforms of its lending facilities. The new Flexible Credit Line and the High Access Precautionary Arrangements differ from what has been in place so far, by allowing for ex ante conditionality. This paper summarizes preconditions for effective last resort lending and evaluates the newly introduced measures, concluding that the Flexible Credit Line comes very close to what has been called an International Lender of Last Resort. The main obstacles are the low demand and slow progress in complementary reforms.

Keywords: IMF Lending; Flexible Credit Line; Financial Stability; Emerging Markets (search for similar items in EconPapers)
JEL-codes: F33 F34 F53 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:41:y:2011:i:2:p:225-238

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