Conditionality as an Instrument of Borrower Credibility: 97


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Conditionality as an Instrument of Borrower Credibility. Fund member countries that adopt market-friendly policies often encounter a credibility problem—market-friendly policies are not effective in stimulating private investment as long as there remains a significant risk of policy reversal.

The root of this risk lies in the discretionary policy-making authority of governments. Committing to a program with the Fund, and endorsing its conditionality, is one instrument available to governments to overcome this difficulty. The paper develops this interpretation of conditionality and indicates some of its operational implications for Fund programs. Pierre Dhonte, Corrections All material on this site has been provided by the respective publishers and authors. Louis Fed. Volume 12 , Issue 7.

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Journal of International Development. Policy Arena. Tools Request permission Export citation Add to favorites Track citation. Share Give access Share full text access. Share full text access. Please review our Terms and Conditions of Use and check box below to share full-text version of article. Abstract Does the involvement of the IMF and World Bank in developing countries and countries in transition help them to attract capital from other sources?

Citing Literature. Volume 12 , Issue 7 October Pages Related Information.

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Conditionality as an Instrument of Borrower Credibility: 97
Conditionality as an Instrument of Borrower Credibility: 97
Conditionality as an Instrument of Borrower Credibility: 97
Conditionality as an Instrument of Borrower Credibility: 97
Conditionality as an Instrument of Borrower Credibility: 97
Conditionality as an Instrument of Borrower Credibility: 97
Conditionality as an Instrument of Borrower Credibility: 97

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