NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sudden Stops and IMF-Supported Programs

Barry Eichengreen, Poonam Gupta, Ashoka Mody

NBER Working Paper No. 12235
Issued in May 2006
NBER Program(s):   IFM

Could a high-access, quick-disbursing “insurance facility” in the IMF help to reduce the incidence of sharp interruptions in capital flows (“sudden stops”)? We contribute to the debate on this question by analyzing the impact of conventional IMF-supported programs on the incidence of sudden stops. Correcting for the non-random assignment of programs, we find that sudden stops are fewer and generally less severe when an IMF arrangement exists and that this form of “insurance” works best for countries with strong fundamentals. In contrast there is no evidence that a Fund-supported program attenuates the output effects of capital account reversals if these nonetheless occur.

download in pdf format
   (254 K)

email paper

This paper is available as PDF (254 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w12235

Published: Sudden Stops and IMF-Supported Programs, Barry Eichengreen, Poonam Gupta, Ashoka Mody. in Financial Markets Volatility and Performance in Emerging Markets, Edwards and Garcia. 2008

Users who downloaded this paper also downloaded these:
Eichengreen, Gupta, and Mody Sudden Stops and IMF-Supported Programs
Barro and Lee w8951 IMF Programs: Who is Chosen and What Are the Effects?
Edwards w11170 Capital Controls, Sudden Stops and Current Account Reversals
Calvo, Izquierdo, and Mejía w10520 On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects
Eichengreen and Gupta w14968 The Two Waves of Service Sector Growth
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us