Institutions, Corporate Governance, and Crises

Abstract

Abstract The prevailing view among economists, international policymakers, and business people is that economic crises are largely the result of mismanaged macroeconomic policies. The International Monetary Fund (IMF), for example, focuses its atten-tion on persuading countries to change these macroeconomic policies. Edwards (1989) analyzes the 34 IMF programs with high conditionality between 1983 and 1985, and provides a breakdown of the typical requirements. Four of the five most common conditions required by the IMF are: control of credit to public sector, control of monetary aggregates, devaluation, and control of public expenditures.