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Title: |
IMF Stabilization Policies in Developing
Countries: A Disaggregated Quantitative Analysis |
| Author: |
Doroodian,
Khosrow |
| Author
Affiliation: |
OH U |
| Source: |
International Economic Journal, Winter 1994, v. 8, no. 4, pp. 41-55 |
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Publication Date: |
Winter 1994 |
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Abstract: |
This study examines the impact of the IMF
programs on balance of payments, inflation, and economic growth of the
program countries. The policy instruments used: currency devaluation,
reduction in government budget and domestic credit, and increase in real
interest rate. The findings show that Fund, in general, improve the rate
of growth in real GDP, the inflation rate, and the current account
balance in the short-run. As to their effectiveness, real interest rate
targeting appears to be the most effective tool. The second important
variable is the growth in domestic credit. Fiscal policy and devaluation
come next in terms of effectiveness. |
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