Emerging market financial crises during the late 1990s were marked by sudden withdrawals of funds by foreign creditors, resulting in production declines. The IMF favored positive signals to potential foreign creditors and initially recommended disciplined fiscal policy during the height of...

Intro -- Contents -- I. INTRODUCTION -- II. BACKGROUND -- III. THE MODEL -- A. Households -- B. Firms -- C. Government -- D. Domestic Financial Intermediary -- E. Foreign Creditor -- IV. EQUILIBRIUM CONDITIONS -- V. PARAMETERS -- VI. SIMULATIONS -- A. The Base Case -- B. Application of...

Emerging market financial crises during the late 1990s were marked by sudden withdrawals of funds by foreign creditors, resulting in production declines. The IMF favored positive signals to potential foreign creditors and initially recommended disciplined fiscal policy during the height of...

Low-income countries were hit especially hard by sharp increases in world food and fuel prices in 2007-08 and the global financial crisis that followed. In response, the International Monetary Fund scaled up its financial assistance to low-income countries and revamped its concessional lending...

Shocks to capital utilization are introduced in a structural macroeconomic closed-economy model with financial frictions to capture disruptions on the ability of the capital stock to provide capital services used in production. Estimates for the Euro Area and the United States show that these...