Insights into the IMF bailout debate: a review and research agenda

Li, L, Sy, M and McMurray, A 2015, 'Insights into the IMF bailout debate: a review and research agenda', Journal of Policy Modeling, vol. 37, no. 6, pp. 891-914.

Document type: Journal Article
Collection: Journal Articles

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Title Insights into the IMF bailout debate: a review and research agenda
Author(s) Li, L
Sy, M
McMurray, A
Year 2015
Journal name Journal of Policy Modeling
Volume number 37
Issue number 6
Start page 891
End page 914
Total pages 24
Publisher Elsevier
Abstract News reports of the International Monetary Fund's (IMF)activities abound in most countries across the globe yet there is little consensus in the literature as to the effectiveness of the IMF's work.The purpose of this study is to provide a systematic review of the IMF literaturethatidentifies the effects of IMF bailouts from the 1970s to the present. We investigate significant elements and consequences of theIMF's bailout policies and implementation approaches such as bailout effectiveness, moral hazard, conditionality, leadership, governance and the sustainability of IMF policy. Based on our review, we develop the 'Spiral of Doom' framework and argue that the effectiveness of the austerity package attached to bailout fundsisquestionablebecause the design of the package overlooks the recipient country's unique economic status and cultural background. We then propose financial engineering solutions as an alternative toIMFbailouts which it is envisagedmay minimize the moral hazard problem associated with bailouts.
Subject Organisational Planning and Management
Keyword(s) Bailout
Economic Growth
DOI - identifier 10.1016/j.jpolmod.2015.09.007
Copyright notice © 2015 The Authors. Published by Elsevier Inc. on behalf of The Society for Policy Modeling. This is an open access article under the CC BY license (
ISSN 0161-8938
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Citation counts: TR Web of Science Citation Count  Cited 5 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 1 times in Scopus Article | Citations
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