Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Published by: Harvard Kennedy School
Published in: 2000

Abstract

Jamaica''s relationship with the International Monetary Fund had often been tense. Currently, the country had no agreements with the IMF, and Prime Minister P.J. Patterson had sworn that his country would never again borrow from the Fund. Still, there were significant advantages to be gained from cooperation with the IMF. Not only was it a source of valuable technical expertise, but Fund approval of the government''s policies could facilitate borrowing on world financial markets or from other multilateral organizations. Recently, the IMF appeared to be softening in its opposition to the government''s policy direction. However, it seemed unlikely that the country could reach a borrowing agreement with the IMF without significant policy adjustments, particularly in the matter of the exchange rate. Under these circumstances, the minister had to determine whether he should approach the Fund for assistance, and if so, what policy changes the government would be willing to make in order to secure that assistance.

About

Abstract

Jamaica''s relationship with the International Monetary Fund had often been tense. Currently, the country had no agreements with the IMF, and Prime Minister P.J. Patterson had sworn that his country would never again borrow from the Fund. Still, there were significant advantages to be gained from cooperation with the IMF. Not only was it a source of valuable technical expertise, but Fund approval of the government''s policies could facilitate borrowing on world financial markets or from other multilateral organizations. Recently, the IMF appeared to be softening in its opposition to the government''s policy direction. However, it seemed unlikely that the country could reach a borrowing agreement with the IMF without significant policy adjustments, particularly in the matter of the exchange rate. Under these circumstances, the minister had to determine whether he should approach the Fund for assistance, and if so, what policy changes the government would be willing to make in order to secure that assistance.

Related