Strengthening IMF Crisis Prevention

By Jonathan David Ostry, Jeromin Zettelmeyer

November 1, 2005

Preview Citation

Format: Chicago

Jonathan David Ostry, and Jeromin Zettelmeyer. Strengthening IMF Crisis Prevention, (USA: International Monetary Fund, 2005) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

To better fulfill its crisis-prevention mandate, IMF surveillance needs to provide stronger incentives for countries to follow good policies and for markets to avoid boom-bust cycles in capital flows. To this end, surveillance should culminate in a summary public assessment of the quality of a country's policies and stipulate the actions needed to address shortcomings. A country's potential access to IMF credits should be linked to the quality of its policies in noncrisis periods in order to create stronger incentives for better policies and reduce incentives for capital to flow where it cannot be used in socially beneficial ways.

Subject: Capital markets, Crisis prevention, Emerging and frontier financial markets, Exchange rates, Financial crises, Financial markets, Foreign exchange, Tax incentives

Keywords: Capital markets, Country, Country policy, Crisis prevention, Emerging and frontier financial markets, Exchange rates, Fund, Fund crisis-prevention policy recommendation, Global, IMF crisis lending, IMF crisis prevention, IMF decision, IMF disbursement, IMF package, IMF surveillance, International Monetary Fund, Lending, Policy, WP

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/206
Stock No:

WPIEA2005206
ISBN:

9781451862256
ISSN:

1018-5941

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