02002cas a2200253 a 4500 AALejournalIMF002377 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852424 1018-5941 BD-DhAAL BD-DhAAL Saravia, Diego. Catalyzing Capital Flows : Do IMF-Supported Programs Work As Commitment Devices? / Diego Saravia, Ashoka Mody. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students An objective of IMF-supported programs is to help countries improve their access to international capital markets. In this paper, we examine the issue whether IMF-supported programs influence the ability of developing country issuers to tap international bond markets and whether they improve spreads paid on the bonds issued. We find that IMF-supported programs do not provide a uniformly favorable signaling effect-that is, the mere existence of a program supported by the IMF does not act as a strong "seal of good housekeeping." Instead, the evidence is most consistent with a positive effect of IMF-supported programs when they are viewed as likely to lead to policy reform and when undertaken before economic fundamentals have deteriorated significantly. The size of the IMF-supported program matters, but the credibility of a joint commitment by the country and the IMF appears to be critical. Mode of access: Internet Mody, Ashoka. IMF Working Papers; Working Paper ; No. 2003/100 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/100/001.2003.issue-100-en.xml IMF e-Library