02084cas a2200253 a 4500 AALejournalIMF009011 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451863352 1018-5941 BD-DhAAL BD-DhAAL Ramakrishnan, Uma. The Role of IMF Support in Crisis Prevention / Uma Ramakrishnan, Juan Zalduendo. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (31 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 This paper examines the role of IMF-supported programs in crisis prevention; specifically, whether, conditional on an episode of intense market pressures, IMF financial support helps prevent a capital account crisis from developing and, if so, through what channels. In doing so, the paper distinguishes between the seal of approval inherent in IMF support and its financing, evaluates the interaction of IMF support with economic policies, and assesses whether IMF financing has a different impact on the likelihood of a crisis than other forms of liquidity. The main result is that IMF financing helps prevent crises through the liquidity provided (i.e., money matters). However, since the effect holds even after controlling for (gross) foreign exchange reserves, stronger policies and the seal of approval under an IMFsupported program must also play a role. Finally, the results suggest that IMF financing as a crisis prevention tool is most effective for an intermediate range of economic fundamentals. Mode of access: Internet Zalduendo, Juan. IMF Working Papers; Working Paper ; No. 2006/075 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/075/001.2006.issue-075-en.xml IMF e-Library