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From Suez to Tequila: The IMF as Crisis Manager

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  • Boughton, James M

Abstract

The IMF was established in 1944 in part to "give confidence to members by making [its] resources ... available to them under adequate safeguards." Although the intention was that the availability of the Fund's resources should prevent financial crises, in practice the Institution often has found itself helping countries cope with crises after they occur. This paper examines how the role of the IMF as crisis manager has evolved, from its earliest loans to the exchange crisis that hit Mexico in December 1994. It argues that the defining moment for this role was the international debt crisis of 1982.

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  • Boughton, James M, 2000. "From Suez to Tequila: The IMF as Crisis Manager," Economic Journal, Royal Economic Society, vol. 110(460), pages 273-291, January.
  • Handle: RePEc:ecj:econjl:v:110:y:2000:i:460:p:273-91
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    Cited by:

    1. Dennis Essers & Stefaan Ide, 2017. "The IMF and precautionary lending : An empirical evaluation of the selectivity and effectiveness of the flexible credit line," Working Paper Research 323, National Bank of Belgium.
    2. Giulio Federico, 2001. "IMF Conditionality," Economics Papers 2001-W19, Economics Group, Nuffield College, University of Oxford, revised 01 Sep 2001.
    3. Daniel McDowell, 2017. "Need for speed: The lending responsiveness of the IMF," The Review of International Organizations, Springer, vol. 12(1), pages 39-73, March.
    4. Barkbu, Bergljot & Eichengreen, Barry & Mody, Ashoka, 2012. "Financial crises and the multilateral response: What the historical record shows," Journal of International Economics, Elsevier, vol. 88(2), pages 422-435.
    5. Ashoka Mody & Diego Saravia, 2013. "The Response Speed of the International Monetary Fund," International Finance, Wiley Blackwell, vol. 16(2), pages 189-211, June.
    6. Dennis Essers & Stefaan Ide, 2017. "The IMF and precautionary lending : An empirical evaluation of the selectivity and effectiveness of the flexible credit line," Working Paper Research 323, National Bank of Belgium.
    7. Hutchison, Michael M. & Noy, Ilan, 2003. "Macroeconomic effects of IMF-sponsored programs in Latin America: output costs, program recidivism and the vicious cycle of failed stabilizations," Journal of International Money and Finance, Elsevier, vol. 22(7), pages 991-1014, December.
    8. James M. Boughton, 2004. "The IMF and the force of History; Ten Events and Ten Ideas that Have Shaped the Institution," IMF Working Papers 04/75, International Monetary Fund.
    9. Michael M. Hutchison, 2004. "Selection Bias and the Output Costs of IMF Programs," EPRU Working Paper Series 04-15, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    10. Robbie Mochrie, 2000. "An Appraisal of Debt Relief for Poor Countries," CERT Discussion Papers 0005, Centre for Economic Reform and Transformation, Heriot Watt University.
    11. Penet, Pierre, 2016. "The IMF failure that wasn’t: tournaments of conditionality and strategic ignorance during the european debt crisis," Working Papers unige:88327, University of Geneva, Paul Bairoch Institute of Economic History.
    12. Giulio Federico, 2001. "IMF Conditionality," Economics Series Working Papers 2001-W19, University of Oxford, Department of Economics.
    13. ORASTEAN Ramona, 2014. "The Lending Arrangements Of The Imf In European Union In Times Of Crisis – Characteristics And Evolutions," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 9(1), pages 134-141, April.

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