Conditionality as an Instrument of Borrower Credibility /

Fund member countries that adopt market-friendly policies often encounter a credibility problem-market-friendly policies are not effective in stimulating private investment as long as there remains a significant risk of policy reversal. The root of this risk lies in the discretionary policy-making a...

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Bibliographic Details
Main Author: Dhonte, Pierre
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1997.
Series:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 1997/002
Subjects:
Online Access:Full text available on IMF
Description
Summary:Fund member countries that adopt market-friendly policies often encounter a credibility problem-market-friendly policies are not effective in stimulating private investment as long as there remains a significant risk of policy reversal. The root of this risk lies in the discretionary policy-making authority of governments. Committing to a program with the Fund, and endorsing its conditionality, is one instrument available to governments to overcome this difficulty. The paper develops this interpretation of conditionality and indicates some of its operational implications for Fund programs.
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Physical Description:1 online resource (18 pages)
Format:Mode of access: Internet
ISSN:1934-7456
Access:Electronic access restricted to authorized BRAC University faculty, staff and students