Stabilization Programs of the International Monetary Fund in the Course of Time
Stabilization Programs of the International Monetary Fund in the Course of Time

Author(s): Marián Nemec
Subject(s): Supranational / Global Economy, Economic history, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: financial crises; financial stability; International monetary fund; stabilization programs;
Summary/Abstract: Since starting its business in 1947, the IMF also began to support member countries with balance of payments problems by giving them credits. This process was accompanying by design of the respective stabilization (financial) program. In the early 50th, a specific approach in the form of a simple model as well as accompanying set of conditions for ensuring financial stability was developed as the base of the IMF´s approach. Afterwards, the methodology of the program design has been changing in accordance with changing conditions. The aim of the paper is by method of historic analysis to find out how the IMF has been changing the way of construction of its stabilization programs from the side of theory and methodology and how it complies with stabilization mandate of the IMF. There are some criticisms that claim the IMF fails to fulfill its aims also for unsound methodological framework of stabilization programs. Our analysis shows that thanks to the flexibility of the IMF´s approach that allows to prepare country tailored programs, this institution have succeeded in the course of time in creating of the reliable framework for preparing of the stabilization programs.

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