Stigma? What stigma? A contribution to the debate on financial market effects of IMF lending

Arbeitspapier

In the policy debate on the effectiveness of the Global Financial Safety Net, concerns have been raised that expectations of adverse effects of IMF programmes may deter countries from asking for an IMF programme when they need one, a form of "IMF stigma". We explore the existence of IMF financial market stigma using monthly data by estimating how and to which extent adverse market reactions to a programme materialise and how past experience with adverse market reactions affects subsequent IMF programme participation. Our results, derived with event history techniques and propensity score matching, indicate no role for "IMF stigma" stemming from the fear of adverse market movements. Instead, we find evidence of "IMF recidivism" driven by adverse selection and IMF conditionality.

Objekt anzeigen

• ISBN: 978-92-899-3303-2
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 2198

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Institutions and the Macroeconomy ; Current Account Adjustment; Short-term Capital Movements ; International Monetary Arrangements and Institutions ; International Lending and Debt Problems
• Thema: Capital flows ; IMF conditionality ; IMF recidivism ; Global Financial Safety Net ; Asian Crisis ; treasury bill rates

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Scheubel, Beatrice ; Tafuro, Andrea ; Vonessen, Benjamin
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2018

Weitere Informationen

• DOI: doi:10.2866/06773
• Handle: http://hdl.handle.net/10419/208232