Imf Conditional Policy

In the past twenty years, with the advance of world economic integration process, the substantial increase in international transactions. The inherent instability of the world economy has led to repeat financial crisis broke out. Meanwhile, the financial crisis is highly contagious, the previous magnitude of the outbreak of the financial crisis were widespread, the global economy suffered. Because of shoulder adjustment of international imbalances, the task of maintaining a stable exchange rate, IMF loans often require the exercise of the functions required to provide short-term financial support for Member States. Member States facing balance of payments imbalance, IMF loans through a variety of tools to provide loan assistance to ensure that their money stock will not panic because of a sharp decline, while structural adjustment programs will be developed to help progressive realization of economic crisis in the country recovery. In the current international monetary system IMF has become the world 's most important financial crisis loan assistance agencies.

IMF rescue plan additional policy measures usually has two aspects: one is the tight monetary and fiscal policies to improve the monetary policy rate, monetary tightening, reduce government spending on fiscal policy to increase domestic revenue, reduce direct and indirect government subsidies; hand IMF also require recipient countries to continue opening up the foreign exchange market, accelerate the opening up of domestic financial markets, consolidation of domestic financial institutions are no longer set up restrictions on foreign territory , such as M & A activity (IMF, 2013) implementation of these measures really . Play the effect of changes in the recipient countries of the economic crisis has been controversial.
Macroeconomic performance issues on the IMF rescue plan, foreign scholars have conducted some related analysis.
Olivier Jeanne, Jonathan D. Ostry and Jeromin Zettelmeyer (2008)...