Abstract
The roles played by the IMF in international debt crises have long been considered controversial among both academics and policy makers. This study reviews the role of IMF bailouts in international debt crises. The literature shows that there is a statistically significant positive wealth transfer from the IMF to the international bank creditors during major event announcements. Further, the evidence indicates the existence of market informational efficiency and different pricing behavior of different groups of international bank creditors. A pertinent future research topic would be to examine whether IMF introduces the moral hazard problem into the international financial markets.
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Acknowledgement
The authors are grateful to Richard L. Peterson and Carl H. Stem for their very valuable suggestions and comments. Remaining errors are ours.
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Zhang, Z., Karim, K.E. (2006). The impacts of IMF bailouts in international debt crises. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_76
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DOI: https://doi.org/10.1007/978-0-387-26336-6_76
Publisher Name: Springer, Boston, MA
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