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Macroeconomic effects of IMF-sponsored programs in Latin America: output costs, program recidivism and the vicious cycle of failed stabilizations Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Hutchison
Ilan Noy
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We investigate the effects of IMF stabilization programs, and the reasons behind the unusually high IMF activity and relatively low program completion rates in Latin America. We base our tests on a panel, and distinguish between IMF program approvals and completion. We find that Latin America has higher output costs of IMF programs (especially when completed), no improvement in the current account, and a much higher likelihood of program failure and recidivism than other regions. The common finding that entering into an IMF-supported program incurs real short-run costs on the economy is entirely driven by the experiences in Latin America.
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Keywords: Economic development - Latin America ; International Monetary Fund ; Macroeconomics ; Other versions of this item:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Michael M. Hutchison, 2004.
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EPRU Working Paper Series
04-15, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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Axel Dreher, 2004.
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