In theory, the IMF could influence fiscal and monetary policy via several channels, among them advice to policy makers, conditionality, and the moral hazard it induces with the borrowers. This article tries to disentangle those effects empirically. Using panel data for 98 countries over the...

Using panel data for 94 countries in 1975–97, we estimate OLS, 2SLS and GMM regressions to explain IMF and IBRD lending as well as monetary and fiscal policies in the recipient countries. With respect to moral hazard, we find that a country's government budget deficit and its rate of...

This paper analyzes the failed IMF program in Turkey that was initiated in December 1999. The 1999 Turkish exchange rate-based stabilization program was presented as an improved version of earlier programs implemented in Latin American countries. The inclusion of an exit strategy was considered...

Using panel data for 106 countries in 1971-1997, we estimate generalized least squares regressions to explain IMF lending as well as monetary and fiscal policies in the recipient countries. With respect to moral hazard, we find that a country's rate of monetary expansion and its government...

This paper analyzes the failed IMF program in Turkey that was initiated in December 1999. The 1999 Turkish exchange rate-based stabilization program was presented as an improved version of earlier programs implemented in Latin American countries. The inclusion of an exit strategy was considered...