The IMF to the rescue : did the euro area benefit from the fund's experience in crisis fighting?

Sebastian Dullien, Barbara Fritz, Laurissa Mühlich

The paper analyses how the IMF brought its experience gained in emerging market sovereign debt crises in the troika’s handling of the euro crisis. We link models of multiple equilibria with the IMF's experience made in Latin American crises in the 2000s. We examine subsequent changes in the IMF’s policy guidelines and show that previous insights have been taken in, but applied only with a significant delay and partially against institutional rules and internal advice for the case of Greece. Hence, we argue that the inclusion of the IMF in Europe’s crisis fighting did not completely deliver what had been hoped for.

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Year of publication:	13.10.2016
Authors:	Dullien, Sebastian ; Fritz, Barbara ; Mühlich, Laurissa
Publisher:	Berlin : Freie Universität Berlin
Subject:	euro crisis \| emerging market debt crisis \| IMF \| multiple equilibria \| sovereign debt resolution mechanism \| Eurozone \| Euro area \| Finanzkrise \| Financial crisis \| Öffentliche Schulden \| Public debt \| IWF-Kredit \| IMF lending \| Schuldenmanagement \| Debt management \| Schuldenkrise \| Debt crisis \| Währungskrise \| Currency crisis \| Schwellenländer \| Emerging economies \| Internationaler Kredit \| International credit \| EU-Staaten \| EU countries \| Internationales Währungssystem \| International monetary system \| Euro \| Bankenkrise \| Banking crisis \| Wirtschaftskrise \| Economic crisis \| Lateinamerika \| Europäische Union \| Internationaler Währungsfonds \| Schuldentilgung