The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

International Monetary Fund

  • Brett House
  • David Vines
  • W. Max Corden
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1966

Abstract

The International Monetary Fund (IMF) was set up in 1944 and charged with supervising the post-war Bretton Woods system of pegged but adjustable exchange rates as a means of promoting international monetary cooperation. Since the Bretton Woods system broke down in 1971, the IMF’s role has become more complicated. It has exercised surveillance over its members’ policies, worked to ensure the stability of the international financial system, and assisted the world’s poorest economies. This article reviews the history and achievements of the IMF as well as the challenges it faces in redefining its role at the beginning of the 21st century.

Keywords

Balance of payments disequilibria Balanced growth Banking crises Beggar-thy-neighbour Bretton Woods system Capital account liberalization Capital controls Catch-up Clearing union Concessionality Conditionality Convertibility Currency crises European monetary union Exchange rate mechanism (EMU) Fixed exchange rates Floating exchange rates Foreign aid General agreement on tariffs and trade Gold exchange standard Gold standard Incomes policy Inflation Inflation targeting International capital flows International monetary fund Intertemporal trade Keynes, J.M. Keynesianism Meade, J.E Monetarism Moral hazard NAFTA Nominal exchange rates Pegged exchange rates Poverty alleviation Price control Real exchange rates Sovereign debt Special drawing rights (IMF) Taylor doctrine Trade liberalization World Bank 

JEL Classifications

F2 
This is a preview of subscription content, log in to check access.

Bibliography

  1. Agénor, R., M. Miller, D. Vines, and A. Weber (eds.). 1999. The Asian financial crises: Causes, contagion, and consequences. Cambridge: Cambridge University Press.Google Scholar
  2. Arriazu, R., J. Crow, and N. Thygesen. 1999. External evaluation of IMF surveillance. Washington, DC: IMF. Online. Available at http://www.imf.org/external/pubs/ft/extev/surv/eval.pdf. Accessed 6 June 2007.Google Scholar
  3. Batini, N., K. Kuttner, and D. Laxton. 2005. Does inflation targeting work in emerging markets? In World economic outlook, September. Washington, DC: IMF. Online. Available at http://www.imf.org/external/pubs/ft/weo/2005/02/pdf/chapter4.pdf. Accessed 6 June 2007.
  4. Blejer, M., A.M. Leone, P. Raubanal, G., and Schwartz. 2001. Inflation targeting in the context of IMF-supported adjustment programs. Working Paper No. 01/31. Washington, DC: IMF.Google Scholar
  5. Bluestein, P. 2001. The Chastening: Inside the crisis that rocked the international financial system and humbled the IMF. New York: Public Affairs.Google Scholar
  6. Boorman, J., T. Lane, M. Schulze-Ghattas, A. Bulir, et al. 2000. Managing financial crises: The experience in east Asia. Working Paper No. 00/107. Washington, DC: IMF.Google Scholar
  7. Bordo, M.D. 1993. The Bretton Woods international monetary system: An historical overview. In A retrospective on the Bretton Woods system, lessons for international monetary reform, ed. M. Bordo and B. Eichengreen. Chicago/London: University of Chicago Press.CrossRefGoogle Scholar
  8. Boughton, J. 2001. Silent revolution: The international monetary fund 1979–1989. Washington, DC: IMF.Google Scholar
  9. Boughton, J. 2004. The IMF and the force of history: Ten events and ten ideas that have shaped the institution. Working Paper, No. 04/75. Washington: IMF.Google Scholar
  10. Boughton, J., and A. Mourmouras. 2004. Whose programme is it? Policy ownership and conditional lending. In The IMF and its critics: Reform of global financial architecture, ed. D. Vines and C. Gilbert. Cambridge: Cambridge University Press.Google Scholar
  11. Calvo, G., and M. Goldstein. 1996. What role for the official sector? In Private capital flows to emerging markets after the Mexican crisis, ed. G. Calvo, M. Goldstein, and E. Hochreiter. Washington, DC: Institute for International Economics.Google Scholar
  12. Calvo, G., and E. Mendoza. 1996. Reflections on Mexico’s balance of payment crisis: A chronicle of a death foretold. Journal of International Economics 41: 235–264.CrossRefGoogle Scholar
  13. Cohen, D., and R. Portes. 2004. Towards a lender of first resort. Discussion Paper No. 4615. London: CEPR.Google Scholar
  14. Corbett, J., and D. Vines. 1999a. Asian currency and financial crises: Lessons from vulnerability, crisis, and collapse. World Economy 22: 155–77.Google Scholar
  15. Corbett, J., and D. Vines. 1999b. The Asian crisis: Lessons from the collapse of financial systems, exchange rates, and macroeconomic policy. In Agénor et al. (1999).Google Scholar
  16. Corbett, J., G. Irwin, and D. Vines. 1999. From Asian miracle to Asian crisis: Why vulnerability, why collapse? In Capital flows and the international financial system, ed. D. Gruen and L. Gower. Sydney: Reserve Bank of Australia. Repr. in Irwin and Vines (2001).Google Scholar
  17. Corden, W.M. 1983a. Is there an important role for an international reserve asset such as the SDR? In International money and credit: The policy roles, ed. G.M. von Furstenberg. Washington, DC: IMF.Google Scholar
  18. Corden, W.M. 1983b. The logic of the international monetary non-system. In Reflections on a troubled world economy, ed. F. Machlup, G. Fels, and H. Muller-Groeling. London: Macmillan.Google Scholar
  19. Corden, W.M. 1990. Macroeconomic adjustment in developing countries. In Public policy and economic development, ed. M. Scott and D. Lal. Oxford: Clarendon Press.Google Scholar
  20. Corden, W.M. 1993. Why did the Bretton Woods system break down? In A Retrospective on the Bretton Woods system, ed. M. Bordo and B. Eichengreen. Chicago: University of Chicago Press.Google Scholar
  21. Corden, W.M. 1999. The Asian crisis: Is there a way out? Singapore: Institute of South Asian Studies.Google Scholar
  22. Corden, W.M. 2002. Too sensational: On the choice of exchange rate regimes. Cambridge, MA: MIT Press.Google Scholar
  23. Corden, W.M. 2007. Those current account imbalances: A sceptical view. World Economy 30: 363–382.CrossRefGoogle Scholar
  24. Dam, K. 1982. The rules of the game. Chicago: University of Chicago Press.Google Scholar
  25. De Gregorio, J., B. Eichengreen, T. Ito, and C. Wyplosz. 1999. An independent and accountable IMF. (Geneva Reports on the World Economy, No. 1). London: CEPR.Google Scholar
  26. de Vries, M.G. 1976. The international monetary fund 1966–71: The system under stress. Washington, DC: IMF.Google Scholar
  27. de Vries, M.G. 1985. The international monetary fund 1972–78: Cooperation on trial. Washington, DC: IMF.Google Scholar
  28. de Vries, M.G. 1987. Balance of payments adjustment, 1945 to 1986: The IMF experience. Washington, DC: IMF.Google Scholar
  29. Dodge, D. 2006a. Global imbalances: Why worry? What to do? Speech made to the New York association for business economics, 29 March. BIS Review, 4 April. Online. Available at http://www.bis.org/review/r060404a.pdf. Accessed 19 June 2007.
  30. Dodge, D. 2006b. The evolving international monetary order and the need for an evolving IMF. Speech given at the Woodrow Wilson School of public and international affairs, 30 March. BIS Review, 5 April. Online. Available at http://www.bis.org/review/r060405a.pdf. Accessed 19 June 2007.
  31. Dooley, M., F. Landau, and P. Garber. 2003. An essay on the revived Bretton Woods system. Working Paper No. 9971. Cambridge, MA: NBER.Google Scholar
  32. Easterly, W. 2005. What did structural adjustment adjust? The association of policies and growth with repeated IMF and World Bank adjustment loans. Journal of Development Economics 76: 1–22.Google Scholar
  33. Edwards, S. 1989. The international monetary fund and the developing countries: A critical evaluation. In IMF policy advice, market volatility, commodity price rule, and other essays, ed. K. Brunner and A.H. Meltzer. Carnegie-Rochester Conference Series on Public Policy. Amsterdam: North-Holland.Google Scholar
  34. Eichengreen, B. 1992. Golden fetters: The gold standard and the great depression 1919–1939. Oxford: Oxford University Press.Google Scholar
  35. Eichengreen, B. (ed.). 1995. Europe’s postwar growth. New York: Cambridge University Press.Google Scholar
  36. Eichengreen, B. 2004. The dollar and the new Bretton Woods system. Henry Thornton Lecture, delivered at the Cass School of Business. London, 15 December.Google Scholar
  37. Eichengreen, B. 2007. The European economy since 1945: Coordinated capitalism and beyond. Princeton: Princeton University Press.Google Scholar
  38. Eichengreen, B., and R. Portes. 1995. Crisis, what crisis? Orderly workouts for sovereign debtors. London: CEPR.Google Scholar
  39. Eichengreen, B., and Y.C. Park. 2006. Global imbalances and emerging markets. Paper presented to the Asia-Europe Economic Forum Conference in Beijing on 13 July, 3, 7–68.Google Scholar
  40. Finch, C.D. 1989. The IMF: The record and the prospects, Essays in international finance no. 175. Princeton: International Finance Section, Department of Economics, Princeton University.Google Scholar
  41. Fischer, S. 1999. On the need for an international lender of last resort. Journal of Economic Perspectives 13(4): 85–104.CrossRefGoogle Scholar
  42. Fischer, S. 2004. IMF essays from a time of crisis: The international financial system, stabilization, and development. Cambridge, MA: MIT Press.Google Scholar
  43. Gardner, R. 1956. Sterling dollar diplomacy. Oxford: Oxford University Press.Google Scholar
  44. Gilbert, C., and D. Vines. 2004. The IMF and international financial architecture: Liquidity and solvency. In Vines and Gilbert.Google Scholar
  45. Gilbert, C., and D. Vines (eds.). 2000. The World Bank: Structure and policies. Cambridge: Cambridge University Press.Google Scholar
  46. Goldstein, M. 2006. Currency manipulation and enforcing the rules of the international monetary system. In Reforming the IMF for the 21st Century, ed. E. Truman. (Special Report No. 19). Washington, DC: Institute for International Economics. Online. Available at http://www.iie.com/publications/chapters_preview/3870/05iie3870.pdf. Accessed 6 June 2007.
  47. Gwin, C., J. Sachs, P. Kenen, R. Feinberg, and J. Nelson. 1990. The international monetary fund in a multipolar World: Pulling together. US–Third World Policy Perspectives No. 13, Overseas Development Council. New Brunswick: Transaction Books.Google Scholar
  48. Horsefield, J.K. 1969. The international monetary fund 1945–65: Twenty years of international monetary cooperation, 3 vols. Washington, DC: IMF.Google Scholar
  49. IFIAC (International Financial Institution Advisory Commission). 2000. Report of the international financial institution advisory commission. Washington, DC: IFIAC, US Congress.Google Scholar
  50. IMF. 2002a. Guidelines on conditionality. Prepared by the Legal and Policy Development and Review Departments, 25 September. Online. Available at http://www.imf.org. Accessed 30 May 2007.
  51. IMF. 2002b. Review of the poverty reduction and growth facility (PRGF) and the poverty reduction strategy paper (PRSP) Approach, 15 March. Online. Available at http://www.imf.org. Accessed 30 May 2007.
  52. IMF. 2003. The IMF and recent capital account crises: Indonesia, Korea, Brazil, Report of the Independent Evaluation Office of the IMF. Washington, DC: IMF. Online. Available at http://www.imf.org. Accessed 6 June 2007.Google Scholar
  53. IMF. 2004a. Policy formulation, analytical frameworks and policy design. Prepared by the Policy Development and Review Department. Online. Available at http://www.imf.org. Accessed 30 May 2007.
  54. IMF. 2004b. Evaluation of the IMF’s role in poverty reduction strategy papers and the poverty reduction and growth facility. Report of the Independent Evaluation Office of the IMF. Washington, DC: IMF. Online. Available at http://www.imf.org. Accessed 6 June 2007.
  55. IMF. 2005a. Argentina: 2005 Article IV consultation – Staff report. (IMF Country Report No. 05/236). Washington, DC: IMF.Google Scholar
  56. IMF. 2005b. The managing director’s report on the fund’s medium-term strategy, 15 September. Online. Available at http://www.imf.org. Accessed 30 May 2007.
  57. IMF. 2005c. Review of PRGF program design – Overview. 8 August. Policy Development and Review Department. Online. Available at http://www.imf.org. Accessed 6 June 2007.
  58. IMF. 2006a. Multilateral Surveillance. Report of the Independent Evaluation Office of the IMF. Washington, DC: IMF. Online. Available at http://www.imf.org. Accessed 6 June 2007.
  59. IMF. 2006b. The Managing Director’s report on implementation of the fund’s medium-term strategy. 5 April. Online. Available at http://www.imf.org. Accessed 30 May 2007.
  60. IMF. 2007a. Committee to study sustainable long-term funding of the IMF: Final report. Online. Available at http://www.imf.org. Accessed 6 June 2007.
  61. IMF. 2007b. The IMF and aid to sub-saharan Africa. Report of the Independent Evaluation Office of the IMF. Washington, DC: IMF. Available at http://www.imf.org. Accessed 6 June 2007.
  62. IMF. 2007c. Final report of the external review committee on bank–fund collaboration. February. Washington, DC: IMF. Online. Available at http://www.imf.org. Accessed 6 June 2007.
  63. IMF. 2007d. Regional economic outlook: Sub-Saharan Africa. Washington, DC: IMF. Online. Available at http://www.imf.org/external/pubs/ft/reo/2007/AFR/ENG/sreo0407.htm. Accessed 6 June 2007.
  64. IMF (International Monetary Fund). 1987. Theoretical aspects of the design of fund-supported adjustment programs, Occasional Paper No. 55. Washington, DC: IMF.CrossRefGoogle Scholar
  65. Irwin, G., and D. Vines (eds.). 2001. Financial market integration and international capital flows. Cheltenham: Edward Elgar.Google Scholar
  66. Irwin, G., and D. Vines. 2003. Government guarantees, investment, and vulnerability to financial crises. Review of International Economics 11: 860–874.CrossRefGoogle Scholar
  67. Irwin, G., and D. Vines. 2005. Policies for the resolution of international financial crises: How to avoid moral hazard. International Journal of Money and Finance 10: 233–250.Google Scholar
  68. Joshi, V., T. Lane, and D. Vines. 2006. The US, East Asia and Europe: How to achieve an orderly resolution of global imbalances. Mimeo: Oxford University.Google Scholar
  69. Kenen, P. 2006. Comments on the address of the Managing Director of the IMF. Washington, DC: Institute for International Economics. Online. Available at http://www.iie.com. Accessed 30 May 2007.Google Scholar
  70. Keynes, J.M. 1936. The general theory of employment, interest and money. London: Macmillan.Google Scholar
  71. Keynes, J.M. 1971–1988. The collected writings of J.M. Keynes, ed. E. Johnson and D. Moggridge. London: Macmillan.Google Scholar
  72. Killick, T. 1986. The quest for economic stabilisation: The IMF and the third world. Aldershot: Gower.Google Scholar
  73. King, M. 2005. The international monetary system. Remarks at Advancing Enterprise 2005 Conference, London, 4 February. Online. Available at http://www.bankofengland.co.uk. Accessed 30 May 2007.
  74. King, M. 2006a. Reform of the international monetary fund. Speech given to the Indian Council for Research on International Economic Relations. New Delhi, 20 February. Online. Available at http://www.bankofengland.co.uk. Accessed 30 May 2007.
  75. King, M. 2006b. Through the looking glass: Reform of the international institutions. Inaugural International Distinguished Lecture, Melbourne Centre for Financial Studies, Australia, 21 December. Online. Available at http://www.bankofengland.co.uk. Accessed 30 May 2007.
  76. Krueger, A. 2002. A new approach to sovereign debt restructuring. Address given at the Indian Council for Research on International Economic Relations, Delhi, 20 December. Online. Available at http://www.imf.org. Accessed 6 June 2007.
  77. Krugman, P. 1999. Balance sheets, the transfer problem, and financial crises. International Tax and Public Finance 6: 459–472.CrossRefGoogle Scholar
  78. Kumar, M. 2006. Economic policy cooperation and coordination: Analytical issues and historical experience. Mimeo, Fiscal Affairs Department, IMF.Google Scholar
  79. Lane, T. 2006. Tensions in the role of the IMF and directions for reform. World Economics 6(2): 47–66.Google Scholar
  80. Little, I.M.D. 1993. Macroeconomic analysis and the developing countries, 1970–1990. Occasional Paper No. 41. San Francisco: International Centre for Economic Growth.Google Scholar
  81. Little, I.M.D., R. Cooper, W.M. Corden, and S. Rajapatirana. 1993. Boom, crisis and adjustment: The macroeconomic experience of developing countries. Oxford: Oxford University Press.Google Scholar
  82. Matthews, R.C.O., and A. Bowen. 1988. Keynesian and other explanations of postwar macroeconomic trends. In Keynes and economic policy, ed. W.A. Eltis and P.J.N. Sinclair. London: NEDO.Google Scholar
  83. Matthews, R.C.O., C.H. Feinstein, and J.C. Odling-Smee. 1982. British economic growth 1956–73. Oxford: Clarendon Press.Google Scholar
  84. McKibbin, W. 1997. Empirical evidence on international economic policy coordination. In Handbook of comparative economic policies volume 5: Macroeconomic policy in open economies, ed. M. Fratianni, D. Salvatore, and J. Von Hagen. London: Greenwood Press.Google Scholar
  85. Meyer, L., B. Doyle, J. Gagnon, and D. Henderson. 2004. International coordination of macroeconomic policies: Still alive in the new millennium? In The IMF and its critics: Reform of global financial architecture, ed. D. Vines and C. Gilbert. Cambridge: Cambridge University Press.Google Scholar
  86. Moggridge, D. 1986. Keynes and the international monetary system 1909–1946. In International monetary problems and supply side economics: Essays in honour of lorie tarshis, ed. J.S. Cohen and G.C. Harcourt. London: Macmillan.Google Scholar
  87. Mussa, M., and M. Savastano. 1999. The IMF approach to economic stabilization. In NBER macroeconomics annual 1999, ed. B. Bernanke and J. Rotemberg. Cambridge, MA: MIT Press.Google Scholar
  88. Odling-Smee, J. 2004. The IMF and Russia in the 1990s. Working Paper No. 04/155. Washington, DC: IMF.Google Scholar
  89. Polak, J. 1957. Monetary analysis of income formation and payments problems. IMF Staff Papers 6: 1–50.CrossRefGoogle Scholar
  90. Portes, R. 2004. Resolution of sovereign debt crises: The new old framework, Discussion paper No. 4717. London: CEPR.Google Scholar
  91. Roubini, N., and B. Setser. 2005. Will the Bretton Woods 2 regime unravel soon? The risk of a hard landing in 2005–2006. Unpublished manuscript. Online. Available at http://pages.stern.nyu.edu/~nroubini/papers/BW2-Unraveling-Roubini-Setser.pdf. Accessed 19 June 2007.
  92. Sachs, J. 1995. Do we need an international lender of last resort? F.D. Graham Lecture at Princeton University, 20 April.Google Scholar
  93. Skidelsky, R. 2000. John Maynard Keynes: Fighting for Britain, 1937–1946. London: Macmillan.Google Scholar
  94. Stiglitz, J. 2002. Globalization and its discontents. New York: W.W. Norton & Company.Google Scholar
  95. Tarp, F. 1993. Stabilization and structural adjustment: Macroeconomic frameworks for analysing the crisis in Sub-Saharan Africa. London: Routledge.CrossRefGoogle Scholar
  96. Temin, P. 2002. The golden age of European growth reconsidered. European Review of Economic History 6: 3–22.CrossRefGoogle Scholar
  97. van Dormael, A. 1978. Bretton Woods: Birth of a monetary system. London: Macmillan.CrossRefGoogle Scholar
  98. Vines, D. 2003. John Maynard Keynes 1937–1946: The creation of international macroeconomics. Economic Journal 113: F338–F361.CrossRefGoogle Scholar
  99. Vines, D., and C. Gilbert (eds.). 2004. The IMF and its critics: Reform of global financial architecture. Cambridge: Cambridge University Press.Google Scholar
  100. Williamson, J. 1977. The failure of World monetary reform 1971–74. New York: New York University Press.Google Scholar
  101. Williamson, J. 1983a. Keynes and the international economic order. In Keynes and the Modern World, ed. G.D.N. Worswick and J. Trevithic. Cambridge: Cambridge University Press.Google Scholar
  102. Williamson, J. (ed.). 1983b. IMF Conditionality. Washington, DC: Institute for International Economics.Google Scholar
  103. Williamson, J. 2000. The role of the IMF: A guide to the reports. Policy Brief 00–5. Washington, DC: Institute for International Economics.Google Scholar
  104. Williamson, J. 2006. The potential of international policy coordination. Paper presented at a seminar on implications for the IMF’s role in surveillance and policy coordination, at a roundtable on international economic cooperation for a Balanced World Economy, Chongqing, China, 12–13 March. Online. Available at http://www.iie.com. Accessed 30 May 2007.
  105. Wolf, M. 2005. Multilateral leadership can right the ship. Financial Times, 28 June.Google Scholar
  106. Wolf, M. 2006. The world needs a tough and independent monetary fund. Financial Times, 22 February.Google Scholar
  107. Woods, N. 2006. The globalisers: The IMF, the World Bank and their borrowers. Ithaca/London: Cornell University Press.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Brett House
    • 1
  • David Vines
  • W. Max Corden
  1. 1.