From crisis to IMF-supported program :
does democracy impede the speed required by financial markets? /
prepared by Ashoka Mody and Diego Saravia.

Description

Main Author

Mody, Ashoka.

Related Names

Saravia, Diego.
International Monetary Fund. European Dept.

Language(s)

English

Published

Washington, D.C. : International Monetary Fund, c2008.

Subjects

International Monetary Fund > International Monetary Fund / Econometric models.
Structural adjustment (Economic policy) > Structural adjustment (Economic policy) / Econometric models.
Democracy > Democracy / Econometric models.
International finance > International finance / Econometric models.
Financial crises > Financial crises / Econometric models.

Summary

Has the spread of democracy and political participation impeded the need for speed required by financial markets and the elevated threat of contagion across borders? We examine the time span between the onset of a financial crisis and the agreement on an IMF-supported adjustment program. This span appears to have decreased over time. More precisely, we find that the time from a crisis to the approval of a program has been smaller the more serious the crisis. Importantly, this responsiveness to a widening range of financial vulnerabilities has increased with growing financial integration. Democracies, particularly those with checks and balances, have been sensitive to time pressures.

Note

"December 2008."
At head of title: European Department.
Also available via the World Wide Web.

Physical Description

33 p. : ill. ; 28 cm.

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