This paper contributes to the debate on the efficacy of IMF's catalytic finance in preventing financial crises …. Extending Morris and Shin (2006), we consider that the IMF's intervention policy usually exerts a signaling effect on private … creditors and that several interventions in sequence may be necessary to avert an impending crisis. Absent of the IMF …

of engaging an outsider a third partyʺ, such as the IMF to organise and facilitate debt restructurings. As we show, the …