This paper examines equilibrium determination under different monetary policy regimes when the government might default on its debt. We apply a cash-in-advance model where the government does not have access to non-distortionary taxation and does not account for initial outstanding debt when it...

This paper seeks to draw lessons from the IMF’s experience in handling financial crises around the globe over the past ten years that are relevant to the challenges faced by countries in Latin America, especially in the wake of the recent crisis in Argentina. Experience suggests that...

This paper discusses the Staff-Monitored Program (SMP) for Guinea. Agreement in principle was reached on the SMP from April 2005 to March 2006. The program would support the authorities’ efforts in restoring macroeconomic stability and establish a track record of policy implementation to...

This 2004 Article IV Consultation highlights that during the first four years of the Third Five-Year Development Plan (2000/01–2003/04), Iran’s real GDP grew by 5.6 percent on average. The external current account was in surplus, external debt was reduced to a very low level,...

The Fourth Review Under the Policy Support Instrument (PSI) for Uganda highlights that the PSI-supported program is on track. All end-December 2011 quantitative assessment criteria were met, as were most of the structural benchmarks. The stance of macroeconomic policy remains appropriate....

The key findings of Suriname’s 2008 Article IV Consultation show that a narrow economic base, terms-of-trade swings, and a weak policy/institutional framework have in the past led to macroeconomic instability. Weak policy and institutional frameworks have contributed to higher economic...

Guinea has implemented an impressive policy shift toward macroeconomic stabilization under the economic program. Executive Directors commended this development and stressed the need for tight fiscal and monetary policies and welcomed the debt sustainability analysis and implementation of the...

This 2007 Article IV Consultation highlights that the transitional government that took over in Haiti following President Aristide’s departure in February 2004 implemented prudent fiscal and monetary policies, and significantly improved governance and transparency in public sector...