IDEAS home Printed from
   My bibliography  Save this paper

A New Facility for the IMF?


  • John Williamson

    (The Jerome Levy Economics Institute)


In this working paper, John Williamson, senior fellow at the Institute for International Economics, evaluates proposals to create a short-term financing facility within the International Monetary Fund (IMF). The emphasis of this facility would be on the time period within which the IMF would respond to a request for assistance, rather than on the duration of the loan. According to Williamson, there are two situations in which existing arrangements within the IMF do not allow for a response quick enough to be effective: when a country is attempting to defend a pegged exchange rate and when default is imminent. Some have suggested that any new facility be able to lend to alleviate these circumstances. Those who support freely floating exchange rates, however, are opposed to supporting a pegged rate regime and favor restricting such activity by any new facility. Others would support the activities of a new facility only in cases that pose a systemic threat. Williamson focuses on the broadest of the purpose that could be fulfilled by a new facility: assisting countries to finance capital flows "judged to be unjustified by the fundamentals and therefore destabilizing." Proposals fitting this purpose (which date back some years and have been enjoying a recent resurgence) stipulate the countries that should have access to such a facility, the terms and level of access, maturity, and the source of the facility's financing.

Suggested Citation

  • John Williamson, 1998. "A New Facility for the IMF?," Macroeconomics 9809013, EconWPA.
  • Handle: RePEc:wpa:wuwpma:9809013 Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 27; figures: included

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Dornbusch, Rudiger, 1989. " Real Exchange Rates and Macroeconomics: A Selective Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(2), pages 401-432.
    2. Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
    3. Froot, Kenneth A. & Rogoff, Kenneth, 1995. "Perspectives on PPP and long-run real exchange rates," Handbook of International Economics,in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 32, pages 1647-1688 Elsevier.
    4. Bienenfeld, Mel, 1988. "Regularity in Price Changes as an Effect of Changes in Distribution," Cambridge Journal of Economics, Oxford University Press, vol. 12(2), pages 247-255, June.
    5. Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • E - Macroeconomics and Monetary Economics

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:9809013. 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: (EconWPA). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.