From Crisis to IMF-Supported Program Does democracy impede the speed required by financial markets?

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 a...

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Bibliographic Details
Main Author: Mody, Ashoka
Other Authors: Saravia, Diego
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a United States 
653 |a Economic & financial crises & disasters 
653 |a Energy: Demand and Supply 
653 |a Oil prices 
653 |a Investment 
653 |a Financial crises 
653 |a Currency; Foreign exchange 
653 |a Long-term Capital Movements 
653 |a Exports and Imports 
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653 |a International economics 
653 |a Foreign Exchange 
653 |a Depreciation 
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653 |a Investments: General 
653 |a Macroeconomics 
653 |a Prices 
653 |a Sudden stops 
653 |a Capacity 
653 |a Capital movements 
653 |a Exchange rates 
653 |a Capital 
653 |a Financial Risk Management 
653 |a Foreign exchange 
653 |a International Investment 
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520 |a 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