Stabilizing Poverty In The Context Of The IMF's Monetary Model

Chand, Sheetal

Stabilizing Poverty In The Context Of The IMF's Monetary Model

No 14/2003, Memorandum from Oslo University, Department of Economics

Abstract: The IMF monetary model focuses on the balance of payments. This paper adds a poverty stabilization objective to it. Drawing on statistical income distribution theory, key aspects of the head count poverty indicator are introduced. The resulting model reproduces traditional balance of payments policy prescriptions, while showing their implications for the incidence of poverty. A balance of payments-poverty tradeoff relationship is derived. This facilitates analysis of pre-emptive policies that can stabilize the incidence of poverty when undertaking balance of payments adjustment, thereby reducing the need for costly alleviation. The suggested approach is illustrated in the context of Mexico’s 1995 stabilization episode.

Keywords: Poverty incidence; IMF monetary model; stabilization policy (search for similar items in EconPapers)
JEL-codes: E32 E61 F32 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2003-06-27
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Chand, Sheetal K., 'Stabilizing Poverty In The Context Of The IMF's Monetary Model' in Journal of Poverty Alleviation and Internatioinal Development, 2012, pages 1-31.

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2003_014

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