The Macroeconomic Impacts of Counterpart Funds

International Monetary Fund

No 1989/063, IMF Working Papers from International Monetary Fund

Abstract: This paper analyzes the macroeconomic impacts of the creation, accumulation, and use of counterpart funds. It draws attention to the importance of including counterpart funds in the design of macroeconomic policies to ensure their consistency. It shows that the creation or accumulation of counterpart funds in most cases is deflationary while their uses are inflationary. One conclusion is that “untied” counterpart funds are more appropriate for countries implementing an adjustment program.

Keywords: WP; counterpart funds; fund; central bank; expenditure; recipient government; government lending funds; counterpart fund account; sale proceeds; net credit; finance expenditure; counter-part funds; use of counterpart funds; currency funds; Commercial banks; Credit (search for similar items in EconPapers)
Pages: 22
Date: 1989-01-01
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