By Anne O. Krueger, Stanley Fischer, Jeffrey D. Sachs

DOI:10.7208/chicago/9780226241104.003.0005

in Economic and Financial Crises in Emerging Market Economies

Editor: Martin Feldstein

Abstract and Keywords

This chapter examines the role of the stabilization programs of the International Monetary Fund (IMF) in the twin crises in the 1990s. These are the balance-of-payments-cum-financial crisis in Mexico in 1994 and the Asian financial crises of 1997–98. This chapter explains that the magnitude and severity of these crises led many to question the role of the IMF both in failing to anticipate and prevent the difficulties and in overseeing programs intended to address the crisis situations. It also considers the types of programs that must be developed when the financial and exchange rate crises occur simultaneously.

Keywords: International Monetary Fund, IMF, stabilization programs, financial crises, balance of payments, Mexico, Asia, exchange rate crises

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