Unless otherwise defined, this refers to the conditions imposed by the International Monetary Fund on countries that make use of its assistance. These primarily include conditions relating to – government spending, – the money supply, and – since around 1980, increasingly also to the political environment and – the economic framework of the recipient country. – In the past, the reforms demanded by the IMF of countries in distress have repeatedly led to a situation in which the cause of economic distortions was not sought in the country’s own often decades-long flawed policies. Instead, necessary steps toward recovery, which almost always involved a reduction in debt-financed consumption, were attributed to IMF conditions. In this way, conditionality often became a synonym for IMF dictation. On the other hand, the donor countries increasingly complained about the apparently inadequate conditionality. Often enough, the aid provided by the IMF seeped into corrupt layers of the inflated apparatus of state in the recipient countries, where it was channeled into luxury consumption. – See bail-out, money home, bailout routine, safety net, global, constitutional article one.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/