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How successful are International Monetary Fund loan programs?

Author

Listed:
  • Kavish HAJARNAVIS
  • Dhruv MAHAJAN
  • Hyunwoo ROH

    (International Researchers)

Abstract

This paper evaluates the effectiveness of International Monetary Fund (IMF) loan programs from 2000 to 2010 by looking at macroeconomic indicators such as the unemployment rate, inflation, real GDP, government debt as a percentage of GDP, and export value. Data is used from the year before the implementation of the IMF loan program to three years after the loan policy was implemented. We chose three years into the future because it gives time for the macroeconomic factors within a country to fully materialize while weeding out much “white noise†(shocks that have nothing to do with the program itself). Our analysis shows that IMF loan programs between 2000 and 2010 were generally unsuccessful in improving macroeconomic growth and stability in countries that sought loans. An accompanying workbook contains the data.

Suggested Citation

  • Kavish HAJARNAVIS & Dhruv MAHAJAN & Hyunwoo ROH, 2023. "How successful are International Monetary Fund loan programs?," Journal of Economics Library, EconSciences Journals, vol. 10(1-2), pages 36-48, March-Jun.
    • Handle: RePEc:cvv:journ5:v:10:y:2023:i:1-2:p:36-48
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    References listed on IDEAS

    as
    1. Luca Papi & Andrea F Presbitero & Alberto Zazzaro, 2015. "IMF Lending and Banking Crises," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 63(3), pages 644-691, November.
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    Keywords

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    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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