European Parliament Library

From Crisis to IMF-Supported Program :, Does democracy impede the speed required by financial markets?, Ashoka Mody, Diego Saravia

Has the spread of democracy and political participation impeded the need for speed required by financial markets and the elevated threat of contagion across borders? We examine the time span between the onset of a financial crisis and the agreement on an IMF-supported adjustment program. This span appears to have decreased over time. More precisely, we find that the time from a crisis to the approval of a program has been smaller the more serious the crisis. Importantly, this responsiveness to a widening range of financial vulnerabilities has increased with growing financial integration. Democracies, particularly those with checks and balances, have been sensitive to time pressures
Table Of Contents
Contents; I. Introduction; Figures; 1. Global Economic Openness and Democracy; II. The Empirical Approach; A. The spell: crisis and response; B. Econometric approach; III. Economic Vulnerability and Speed of Response; IV. Changes Over Time; V. The Borrower's Relationship with the Fund; VI. Has Globalization Curtailed Deliberative Democracy; VII. Conclusions; 2a. Effective Coefficient on Reserve Loss; 2b. Effective Coefficient on Trade/GDP; Tables; 1. The Spell-from Crisis to Standby Arrangement (SBA); 2. Change in per capita GDP growth rates following SBA
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (35 p.)
Specific Material Designation
Form Of Item

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