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The Response Speed of the International Monetary Fund

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  • Ashoka Mody
  • Diego Saravia

Abstract

The more severe a financial crisis, the greater has been the likelihood of its management under an IMFsupported program and shorter the time from crisis onset to program initiation. Political links to the United States have raised program likelihood but have prompted faster response mainly for “major” crises. Over time, the IMF’s response has not been robustly faster, but the time sensitivity to the more severe crises and those related to fixed exchange rate regimes did increase from the mid-1980s. Similarly, democracies had tended to stall program initiation but have turned supportive of financial markets’ demands for quicker action.

Suggested Citation

  • Ashoka Mody & Diego Saravia, 2013. "The Response Speed of the International Monetary Fund," Working Papers Central Bank of Chile 692, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:692
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_692.pdf
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    References listed on IDEAS

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    Cited by:

    1. Avellán, Leopoldo & Galindo, Arturo J. & Lotti, Giulia, 2021. "Sovereign external borrowing and multilateral lending in crises," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 206-238.
    2. Diego Saravia, 2013. "Vulnerability, Crises and Debt Maturity: Do IMF Interventions Increase Reliance on Short-Term Debt?," International Finance, Wiley Blackwell, vol. 16(3), pages 311-331, December.
    3. Daniel McDowell, 2017. "Need for speed: The lending responsiveness of the IMF," The Review of International Organizations, Springer, vol. 12(1), pages 39-73, March.

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