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The response speed of the International Monetary Fund

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  • Ashoka Mody
  • Diego Saravia

Abstract

The more severe a financial crisis, the greater has been the likelihood of its management under an IMF-supported programme and the shorter the time from crisis onset to programme initiation. Political links to the United States have increased programme likelihood but have prompted faster response mainly for ‘major’crises. Over time, the IMF’s response has not been robustly faster, but the time sensitivity to the more severe crises and those related to fixed exchange rate regimes did increase from the mid-1980s. Similarly, democracies had tended to stall programme initiation but have become more supportive of financial markets’ demands for quicker action.

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  • Ashoka Mody & Diego Saravia, 2013. "The response speed of the International Monetary Fund," Working Papers 786, Bruegel.
  • Handle: RePEc:bre:wpaper:786
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    References listed on IDEAS

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    7. Michael D. Bordo & Harold James, 2000. "The International Monetary Fund: Its Present Role in Historical Perspective," NBER Working Papers 7724, National Bureau of Economic Research, Inc.
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    10. Kilby, Christopher, 2013. "The political economy of project preparation: An empirical analysis of World Bank projects," Journal of Development Economics, Elsevier, vol. 105(C), pages 211-225.
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    Cited by:

    1. Diego Saravia, 2013. "Vulnerability, Crises and Debt Maturity: Do IMF Interventions Increase Reliance on Short-Term Debt?," International Finance, Wiley Blackwell, vol. 16(3), pages 311-331, December.
    2. 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.

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