Over the past few years there has been growing interest in the relationship between adjustment policies supported by the International Monetary Fund (hereafter, IMF or Fund) and political instability. This interest has developed both in academic circles and the mass media, and has been stimulated largely by the apparent association between politically-destabilising events and the implementation of Fund-supported adjustment programs. The experiences of such countries as Jamaica, Bolivia, the Dominican Republic, and the Philippines, as well as the widely publicised reservations that Argentine President Alfonsin expressed over use of Fund resources, have transformed this issue from a minor area of academic curiosity to a heated journalistic and scholarly debate.
KeywordsPolitical Instability Exchange Rate Equilibrium Fund Resource Monetarist Approach Error Component Model
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