IMF programmes must not get too large – Bundesbank paper
Preferred creditor status can lead to large-scale IMF operations crowding out private investors
International Monetary Fund programmes are more likely to change an economy if they do not grow beyond a certain size, a working paper published by the Deutsche Bundesbank argues.
In Doing more with less: the catalytic function of IMF lending and the role of program size, Tobias Krahnk compiles a dataset on IMF programmes from 1990–2018.
IMF programmes generally have positive catalytic effects on recipient economies, Krahnk finds, but this changes once programmes pass a certain size.
Once
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Economics
Public backstop complements private liquidity – BoE paper
Wholesale funding conditions improve even without banks tapping lending facilities, researchers find
Minimum haircuts must be carefully designed – BIS bulletin
Funding- and collateral-driven trades incentivise different repo terms, authors point out
Rise of NBFIs suggests gradualism is best policy – BIS bulletin
Institutions’ uncertain effects on transmission warrant flexibility from central banks, says study
Private liquidity insurance improves stability – BIS study
Yet prospect of central bank interventions can crowd out market, authors say
Lagarde says talk of AI bubble misses ‘bigger picture’
ECB president, a former AI sceptic, now believes not embracing it could ‘jeopardise Europe’s future’
BIS paper explores how central bankers’ lives shape policy
Officials who have experienced high inflation tend to be more hawkish, researcher finds
‘Imaginations are running wild’ – Nagel on AI
Europe is prepared for a financial downturn, Bundesbank president says
Poorer areas in US have higher food inflation – research
Low-income areas also have less disinflation after shocks pass, Atlanta Fed study finds