How Does the Global Economic Environment Influence the Demand for IMF Resources?

WPIEA2006239 Image
Price:  $18.00

Author/Editor: Selim Elekdag
Release Date: © October, 2006
ISBN : 978-1-45186-499-1
Stock #: WPIEA2006239
Stock Status: On back-order

Languages and formats available



The main objective of this paper is to quantify the relationship between the global economic environment and the number of Stand-By Arrangements (SBAs). The results suggest that oil prices, world interest rates, and the global business cycle are the most influential indicators that affect the number of SBAs being requested. In addition, the empirical model seems to have reasonable accuracy when predicting SBAs. Furthermore, when oil prices, interest rates, and the global business cycle are adversely shocked by one standard deviation, the conditional probability of a SBA nearly doubles, implying an increase from about six to 12 SBAs. More critically, the model suggests that even a steady deterioration of the global economic climate would imply increasingly harsher conditions for developing and emerging market countries which may in turn significantly increase the demand for IMF resources.


Banks and banking , Financial institutions and markets , IMF governance and operations , Loans , Operations , Stand-by Arrangements

More publications in this series: Working Papers

More publications by: Selim Elekdag