|
EconStor >
Bank of Canada, Ottawa >
Bank of Canada Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/53950
|
| | |
| Title: | | IMF-supported adjustment programs: Welfare implications and the catalytic effect  |
| Authors: | | De Resende, Carlos |
| Issue Date: | | 2007 |
| Series/Report no.: | | Bank of Canada Working Paper 2007,22 |
| Abstract: | | The author studies the welfare implications of adjustment programs supported by the International Monetary Fund (IMF). He uses a model where an endogenous borrowing constraint, set up by international lenders who will never lend more than a debt ceiling, forces the borrowing economy to always choose repayment over default. The immediate potential welfare cost of joining a program is driven by IMF conditionality: to be able to borrow from the IMF, the country has to submit to limits on the consumption of public goods. The benefits derive from the additional borrowing from the IMF (at a lower interest rate) and/or through a catalytic effect on private loans, which facilitates consumption smoothing over time. Simulations of the dynamic model in two institutional environments |
| Subjects: | | with and without the IMF |
| JEL: | | F32 F33 F34 F41 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Bank of Canada Working Papers
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/53950
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|