Does the global fireman inadvertently add fuel to the fire? New evidence from institutional investors' response to IMF program announcements
Fighting global financial crises is a primary charge of the IMF. Yet it has often been criticized to have hindered rather than helped the recovery of many countries in a crisis by demanding policy changes that may not be appropriate for them in that particular moment. Such actions would tend to damage investor confidence. Using monthly data on investment in 94 developing countries by 168 institutional investors during 1996-2005, this paper re-assesses this important question. We find that the IMF has typically restored rather than reduced investor confidence.
When requesting a correction, please mention this item's handle: RePEc:eee:jimfin:v:29:y:2010:i:4:p:728-741. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.