Applied Economics in Action: IMF Programs

• Published in: The American economic review Vol. 87; no. 2; pp. 23 - 27
• Main Author: Fischer, Stanley
• Format: Journal Article
• Language: English
• Published: Nashville American Economic Association 01.05.1997; American Economic Assoc
• Subjects: 1996; Applied economics; Applied Economics in Action: The International Monetary Fund; Balance of payments; Balance sheets; Budget deficits; Central banks; Development banks; Economic aid; Economic development; Economic policy; Economics; Government budgets; IMF; Inflation; Interest rates; International; International financial institutions; International lending; Internationaler Kredit; Internationaler Währungsfonds; Liberalization; Loans; Macroeconomic reform; Macroeconomic stability; Macroeconomics; Monetary policy; Negotiations; Nongovernmental organizations; Political economy; Politics; Roles; Safeguards; Studies; Transition economies; Transitional economies; Welt; World Bank
• ISSN: 0002-8282; 1944-7981

Among the purposes of the International Monetary Fund (IMF) set out in the first Article of Agreement is to give confidence to members by making the general resources of the Fund available to them under adequate safeguards. Sixty-one members countries are currently in programs with the IMF that allow them to borrow, subject to agreed-upon conditions on their economic policies. In many countries, the IMF program is the critical element in macroeconomic policy, and adherence to the program is in many cases a prerequisite to obtaining other public and private loans. An introduction is provided to IMF programs and the economic and political economy issues associated with them.