And the Money Kept Rolling In (and Out): Wall Street, the IMF, and the Bankrupting of Argentina
Average customer rating: 5 out of 5 stars
  • Superb book - reads like a fiction, hits like reality!
  • A wonderful look at how an economy collapsed
  • Objective chronicle of a nation's collapse
  • Another Winner from Blustein
  • Economics of Debt
And the Money Kept Rolling In (and Out): Wall Street, the IMF, and the Bankrupting of Argentina
Paul Blustein
Manufacturer: PublicAffairs
ProductGroup: Book
Binding: Hardcover

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ASIN: 1586482459
Release Date: 2005-03-01

Amazon.com

It's not often--or maybe ever--that a book steeped in emerging-market economic theory reads like a thriller. But And the Money Kept Rolling In (and Out) has cliffhangers and plot twists equal to a detective's tale, as Paul Blustein chronicles the spectacular rise and fall of Argentina's economy at the turn of the 21st century. The book has its flaws, of course, including the author's insistence on using goofy metaphors from the overripe Andrew Lloyd Webber musical Evita (from which the book takes its awkward title). But by and large, Blustein, a staff writer at the Washington Post, tells a cynic's tale of greed run amok on a massive scale.

While policy wonks at the International Monetary Fund had much to do with Argentina's implosion, Blustein also holds the country's own government responsible. Conventional wisdom says that the influence of the world's investors keeps everyone in line--a key tenet of the pro-globalization argument--but in practice, Blustein writes, "foreign funds numbed Argentine policymakers into minimizing the perils of their policies. The effect was similar to a dose of steroids, giving the economy a short-term boost while insidiously increasing the risk of a breakdown in the long run." From that point on, only devastation lay ahead for many average Argentineans, who could no longer remove savings from their banks, and for international investors, who saw their returns vanish in a flash. Blustein effectively makes the case that Argentina wasn't a rare example or a perfect storm of problems, but--bearing "striking parallels" to Enron and other financial scandals of the era--a preview of more meltdowns to come. It's a compelling cautionary tale well worth telling. --Jennifer Buckendorff

Book Description

The dramatic, definitive account of the most spectacular economic meltdown of modern times exposes the dangerous flaws of our global financial system.

In the 1990s, few countries were more lionized than Argentina for its efforts to join the club of wealthy nations. Argentina's policies drew enthusiastic applause from the IMF, the World Bank and Wall Street. But the club has a disturbing propensity to turn its back on arrivistes and cast them out. That was what happened in 2001, when Argentina suffered one of the most spectacular crashes in modern history. With it came appalling social and political chaos, a collapse of the peso, and a wrenching downturn that threw millions into poverty and left nearly one quarter of the workforce unemployed.

Paul Blustein, whose book about the IMF, The Chastening, was called "gripping, often frightening" by The Economist and lauded by the Wall Street Journal as "a superbly reported and skillfully woven story," now gets right inside Argentina's rise and fall in a dramatic account based on hundreds of interviews with top policymakers and financial market players as well as reams of internal documents. He shows how the IMF turned a blind eye to the vulnerabilities of its star pupil, and exposes the conduct of global financial market players in Argentina as redolent of the scandals-like those at Enron, WorldCom and Global Crossing- that rocked Wall Street in recent years. By going behind the scenes of Argentina's debacle, Blustein shows with unmistakable clarity how sadly elusive the path of hope and progress remains to the great bulk of humanity still mired in poverty and underdevelopment.

Customer Reviews:

5 out of 5 stars Superb book - reads like a fiction, hits like reality!.......2007-10-10

This is a short book, easy to read and boy, does it deliver! An account of Argentina during it's economy's heyday and the fall, this book is a fascinating read. It starts off with a brief review of Argentina during the late 1800s and early 1900s but jumps right on the main topic after that. The author explains in extremely lucid prose (no finance knowledge required whatsoever) how the economy was fueled by international funds and how it went bust. Excellent examples, and written like a thriller ... 5 stars all the way!

5 out of 5 stars A wonderful look at how an economy collapsed.......2007-07-09

This book seeks to understand how and why Argentina sank into financial chaos in the early 2000's. The book looks at the role of the IMF, US treasury, private markets, and the Argentinean government in the overall downfall of the country. The author writes very well about his subject and has a good understanding of international economics. The IMF is not completely vilified as it is in many of the current financial crisis's and although it shares a large amount of the blame the book hands it out equally. There is quite a bit of conspiracy theory and engaging in theories behind the IMF and Wall Street as well as the Bush administration. The author acknowledges in most cases that these are conspiracies but they did not really need to be discussed. The most interesting part of the story has to do with the role that the markets played in Argentina. It is an interesting foreshadow for the future of emerging markets and looking at the self fulfilling prophecies of debt and equity. This book deserves its credit for focusing on real issues without engaging in much ideology or theory. If you want to understand how financial markets are impacting areas overseas this is a great book to start with.

4 out of 5 stars Objective chronicle of a nation's collapse.......2007-06-10

This book examines the economic history of Argentina from the early 20th century to 2004, with an emphasis on the time period from 1989 to 2002. The focus is on the financial sector of the economy, and how actions by the government and international financial institutions first ballooned Argentina's economy over a decade, and then collapsed it in just under 2 years. The point of view is from the top, as the book follows multiple important figures throughout this time, including officials at the IMF, officials in Argentina's government, and financial bigwigs in the US and Europe, both public and private.

The author is quite objective and impartial, and lays blame all around. The IMF gets some blame for not being more forceful in getting Argentina to change its ways. International banks and lenders get blame for contributing willingly to the financial bubble of the country. And the Argentinan government gets blame for refusing to consider floating its currency, devaluing it, or restructuring its debt before it was too late. Unfortunately, it was the citizens, mainly poor and middle class, of Argentina who took it in the pocketbooks. All in all a great book, with equal emphasis on economics, public policy, and historical analysis. I highly recommend this book.

5 out of 5 stars Another Winner from Blustein.......2006-10-15

Paul Blustein may have have created a new genre: the real-life financial crisis thriller. Having dissected the Asian financial crisis in "The Chastening," he now turns to Argentina in "And the Money Kept Rolling in (and Out)." The book tells the fascinating story of how Argentina, after being lionized as the poster child of free market reform in the early 1990s, became hooked on foreign debt that ballooned far faster than its ability to service it. The outcome was default and financial ruin in 2001-02, with vast economic hardship for the Argentine population.

As in "The Chasterning," Blustein's narrative is clearly-written and based on in-depth interviews with decision-makers in government, the IMF, and the financial community. He takes aim at perverse institutional incentives and herd-behavior among investors who poured money into Argentina long after it was clear that the country couldn't pay its bills. This profligacy encouraged an attitude of policy-complacency in Buenos Aires that made the final reckoning all the more painful for foreign bond-holders and Argentines alike. Highly recommended.

4 out of 5 stars Economics of Debt.......2006-09-18

This was a very interesting book about the IMF and its dealing with Argentina. Argentina has had a colorful past of financial blunders including one in 1890 which almost brought down Barings Bank when it defaulted on its bond payments. So it was not surprising when Argentina bankrupted again.

Not only does this book have the inner workings of the IMF with regard to Argentina but it also contains some short stories of average people and the catastrophies that befell them because of Argentina's currency devaluation. I found it interesting that because Argentina guaranteed an exchange rate between its currency and the dollar that a lot of people had taken out loans in dollars which proved to be disasterous when the peso was devalued.

All the information about the behind the scenes action of the IMF was very insightful as to the inner workings of global financing of emerging nations. The author did a good job bringing home the facts and helping the reader get to know the players in both the IMF and the Argentine government. In summary this was a good lesson on the economics of what debt can do to a country.
The IMF and Economic Development
Average customer rating: 5 out of 5 stars
  • Is the IMF really as bad as they say?
  • Sound Analysis
The IMF and Economic Development
James Raymond Vreeland
Manufacturer: Cambridge University Press
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Binding: Paperback

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ASIN: 0521016959

Book Description

Why do governments turn to the International Monetary Fund (IMF) and with what effects? In this book, James Vreeland examines this question by analyzing cross-national time-series data from throughout the world. Vreeland argues that governments enter into IMF programs for economic and political reasons, and he finds that the programs hurt economic growth and redistribute income upward. By bringing in the IMF, governments gain political leverage - via conditionality - to push through unpopular policies. For certain constituencies, these policies dampen the effects of bad economic performance by redistributing income. But IMF programs doubly hurt others who are less well off: They lower growth and exacerbate income inequality.

Customer Reviews:

5 out of 5 stars Is the IMF really as bad as they say?.......2003-10-21

The growing movement against neo-liberal policies needs more books like this, one that really examine if their propaganda matches up tough scrutiny. As Vreeland discusses to much of supposed statistical studies showing the harms of IMF policies mearly state "countries in IMF conditionalities do worse in criteria X than countries that do not" which he cmpares to simply saying people who go to a doctor are found to be sicker than those who do not. This book - not the final answer to the question - provides a first good study of the effects of IMF programs. While he dose find that IMF programs do negatively effect growth I believe many who have organized against the IMF will be surprised by how small the difference is. His findings that the programs exacerbate economic inequality are hardly new yet are a nice new addition to the literature. Most interesting - and where this book is a serious and importantant contribution is inhis studies on the what determines a countries participation in the IMF program. Combiming anecdotal evidence, logical anlysis and statistical studies he shows that it is largely determined by desire of the executive branch to have the conditions imposed on their country. To the extent that this is accuarate then the anti-IMF movement might need to rewrite its propaganda of the IMF being about class war of the first world nations against the third world countries to being about class war from the world capitalist against the world's workers.

5 out of 5 stars Sound Analysis.......2003-04-08

In this book Vreeland offers a cogent analysis of why governments enter into IMF agreements, and identifies startling effects of the effect of such programs on host country economic performance.

Unlike Stiglitz in "Globalization and Its Discontents," Vreeland takes a quantitative approach in measuring the effects of IMF programs. His work seems less concerned with the empty rhetoric that surrounds the anti-globalization movement that have pre-occupied many IMF crtics, and instead draws heavily upon statstical evidence.

Not the only book published recently about the IMF in academia, but certainly one of the better ones.
Rules For The World: International Organizations In Global Politics
Average customer rating: 3 out of 5 stars
  • Why International Organizations Fail
Rules For The World: International Organizations In Global Politics
Michael Barnett , and Martha Finnemore
Manufacturer: Cornell University Press
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Binding: Paperback

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ASIN: 0801488230

Book Description

Rules for the World provides an innovative perspective on the behavior of international organizations and their effects on global politics. Arguing against the conventional wisdom that these bodies are little more than instruments of states, Michael Barnett and Martha Finnemore begin with the fundamental insight that international organizations are bureaucracies that have authority to make rules and so exercise power. At the same time, Barnett and Finnemore maintain, such bureaucracies can become obsessed with their own rules, producing unresponsive, inefficient, and self-defeating outcomes. Authority thus gives international organizations autonomy and allows them to evolve and expand in ways unintended by their creators.

Barnett and Finnemore reinterpret three areas of activity that have prompted extensive policy debate: the use of expertise by the IMF to expand its intrusion into national economies; the redefinition of the category "refugees" and decision to repatriate by the United Nations High Commissioner for Refugees; and the UN Secretariat's failure to recommend an intervention during the first weeks of the Rwandan genocide. By providing theoretical foundations for treating these organizations as autonomous actors in their own right, Rules for the World contributes greatly to our understanding of global politics and global governance.

Customer Reviews:

3 out of 5 stars Why International Organizations Fail.......2005-12-18

International relations theory has long ago identified a subfield that deals specifically with the existence of international organizations - IOs in the jargon. This field has yielded relatively few insights, and is of little use to the practitioner. Scholars have proposed complex theoretical constructs - "international regimes" - to explain cooperation among states, but they have tended to treat international organizations as mere servants of states' interests, not as actors in their own right. They have very seldom opened the black box to describe what IOs are really like.

Now Barnett and Finnemore want to revive the subject by going back to basic questions - what do international organizations do, how do they work - and by using the tools of another discipline, sociology, which has much to say about the behavior of organizations. They begin with an obvious starting point: international organizations are bureaucracies and, as such, they exhibit many of the pathologies that we associate with these large impersonal organizations - their lack of responsiveness, their taste for red tape, their tunnel vision, their mission creep. But bureaucracies also have qualities for which they do not always get credit but that make them an indispensable component of our modern world: their capacity to manage complex tasks in a rational way, their predictability and fairness in the application of general rules, their expertise in the use and production of knowledge, their legitimacy in the pursuit of the common interest.

The two authors then lead the reader through a crash course in organizational behavior, starting with scholarly debates about IOs' autonomy, power, dysfunction and change, then moving to the characteristics of modern bureaucracies (hierarchy, continuity, impersonality, expertise) and to the effects of bureaucratic rules (rules as operating procedures, rules as lenses through which problems are defined and classified, rules as creating a world amenable to the intervention of experts, rules as the basis of an organizational culture). Rules of experts "construct" the social world, they help create the world as it is: this is the basic tenet of the "constructivist" school of thought from which this book derives.

The authors distinguish between four types of authority that international bureaucracies can wield in their relations with states and other actors: delegated authority, when international organizations act on behalf of states; moral authority, when they represent the interests and values of the international community; expert authority, when knowledge yields power; and rational-legal authority, which is the hallmark of bureaucratic power. These four types of authority - delegated, moral, expert, and rational-legal - have the twin effects of putting IOs "in authority" and of making them "an authority": IOs are often the actors empowered to decide if there is a problem on a particular issue, what kind a problem it is, and whose responsibility it is to solve it.

After having developed this theoretical framework, Barnett and Finnemore then move on to present three case studies of international organizations, focusing on their autonomy from states, the way they exercise power, their change processes, and how they sometimes produce inefficient and self-defeating outcomes. They first examine the IMF and the way its economic expertise made ever-increasing intervention in domestic economies seem logical and even necessary to states that had explicitly barred such action in the organization's Articles of Agreements. They then describe how the United Nations High Commissioner for Refugees (UNHCR) used its authority to expand the concept of refugee and later developed a repatriation culture that led to violations of refugee rights. Finally, they look at the UN Secretariat, the bureaucratization of peacekeeping, and the development of a peacekeeping culture that led the institution to turn a blind eye when crimes against humanity were committed in Rwanda.

The book is not exempt from verbose jargon that sometimes makes it a hard read, and from approximations that lead the authors to couch some controversial statements without substantiating them (on the "failure" of IMF programs, for instance). They mostly keep a bird eye's view on the bureaucracies that they study, and fail to describe their inner workings in a meaningful way. They spend too much time discussing chicken-and-egg problems, such as the autonomy of international organizations vis-à-vis the states, and too little on important issues such as leadership or accountability. Their last proposition, that the promotion of democracies and liberalism is more and more dependent on organizations that are neither liberal nor democratic, would in itself have deserved a single volume. Despite its shortcomings, this book is a valuable addition to the field, and one hopes that it may spur further empirical studies on the bureaucracies that increasingly provide rules for the world.
Contesting Global Governance: Multilateral Economic Institutions and Global Social Movements (Cambridge Studies in International Relations)
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    Contesting Global Governance: Multilateral Economic Institutions and Global Social Movements (Cambridge Studies in International Relations)
    Robert O'Brien , Anne Marie Goetz , Jan Aart Scholte , and Marc Williams
    Manufacturer: Cambridge University Press
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    ASIN: 0521774403

    Book Description

    The contest to shape global governance is increasingly being conducted on a number of levels and among a diverse set of actors. This book argues that increasing engagement between international institutions and sectors of civil society is producing a new form of international organization. The authors study the relationship between the IMF, World Bank, and World Trade Organisation, and environmental, labor, and women's movements, providing a rich analysis of the institutional response to social movement pressure.

    Download Description

    This book argues that increasing engagement between international institutions and sectors of civil society is producing a new form of global governance. The authors investigate 'complex multilateralism' by studying the relationship between three multilateral economic institutions (the IMF, World Bank, and World Trade Organization), and three global social movements (environmental, labour, and women's movements). They provide a rich comparative analysis of the institutional response to social movement pressure, tracing institutional change, policy modification and social movement tactics as they struggle to influence the rules and practices governing trade, finance and development regimes. The contest to shape global governance is increasingly being conducted upon a number of levels and amongst a diverse set of actors. Analysing a unique breadth of institutions and movements, this book charts an important part of that contest.
    The IMF and its Critics: Reform of Global Financial Architecture (Global Economic Institutions)
    Average customer rating: Not rated
      The IMF and its Critics: Reform of Global Financial Architecture (Global Economic Institutions)

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      Written by leading economists including Nobel laureate Joseph Stiglitz, this collection combines rigorous economic analysis with insider perspectives on key policy debates surrounding the future of the International Monetary Fund. As the role of the IMF and the "Washington Consensus" have come under intense scrutiny, this collection offers a valuable wide-ranging overview of the debate, making it an essential reference for anyone interested in the role of international financial institutions in our globalized economy.
      REFORM OF THE INTERNATIONAL INSTITUTIONS: The IMF, World Bank And the WTO
      Average customer rating: 1 out of 5 stars
      • Don't waste your money
      REFORM OF THE INTERNATIONAL INSTITUTIONS: The IMF, World Bank And the WTO
      Peter Coffey , and Robert J. Riley
      Manufacturer: Edward Elgar Publishing
      ProductGroup: Book
      Binding: Hardcover

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      ASIN: 1843760266

      Book Description

      At no period since the creation of the International Monetary Fund (IMF), World Bank and World Trade Organisation (WTO) has it been a more opportune time to examine the work, reform and future of the international monetary and trading systems. In this comprehensive examination, the authors provide original, independent assessments of these institutions from both an American and European perspective and offer proposals for reform and improvement.

      Customer Reviews:

      1 out of 5 stars Don't waste your money.......2007-09-27

      This book is a disappointment; it is shallow and does no justice to the seriousness of the subject matter.
      Unholy Trinity: The IMF, World Bank and WTO
      Average customer rating: 4 out of 5 stars
      • Whose Hitler?
      • good class action
      • good overview of the IMF, World Bank & WTO
      • The Politics of Writing
      • Not Right
      Unholy Trinity: The IMF, World Bank and WTO
      Richard Peet
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      ASIN: 184277073X

      Book Description

      Our lives are all affected by three hugely powerful and well financed, but undemocratic, organizations: the International Monetary Fund, the World Bank and the World Trade Organization. These institutions share a common ideology. They aggressively promote "corporate" capitalism, neoliberalism, giving free rein to the interests of a small number of transnational corporations. This book presents the history and fundamental ideas of this economic ideology. Describing each member of the "unholy trinity," it shows how neoliberalism hijacked the IMF, World Bank and WTO in relation to their global financial, development and trade management roles.

      Customer Reviews:

      5 out of 5 stars Whose Hitler?.......2007-04-04

      In a word, if you like living in a sovereign nation, then write your Congressional representive, your Senators, and have the US removed from these organizations. There is a real bad element here. World domination bad.

      5 out of 5 stars good class action.......2005-10-03

      This is what university work should be like: a professor leading a group of studnets in common action and collectieley publishing their work. Well done. Lots of good points which the unholy trinity should answer in some forum or other. All three organs are dominated by the US as Stiglitz, Bellamy and others have pointed out. Whether US hegemony is a good or bad thing is a different question.
      I felt the book could have done without Foucault, who has little to contribute on the parameters of discourse or much else. The fact is the budgets of these institutions dwarf all others and it makes a welcome change to see an articulate counter point of view, especially as it was a grassroots student project. Definitely worth a read.

      4 out of 5 stars good overview of the IMF, World Bank & WTO.......2005-03-29

      Any one looking for a good, critical overview of the history of the International Monetary Fund, World Bank, and World Trade Organization--the major institutions of international economic governance, the institutional guardians and promoters of neoliberal globalization--should check this book out. It reviews the history of these three organizations in depth. Most analyses of these organizations that I've seen just look at their current policies and critique them. Peet (and the junior student authors who assisted him) add a great deal of historical depth to this, looking at the conditions under which the unhol trinity were founded at the end of World War II, how their missions have changed over time, and the power structures in which these organizations are embedded and part of. He looks at how the changing ways the US government has used these organizations to advance the interests of the US political-economic elite (what Peet et al. call the Washington-Wall Street Alliance) on the world stage. This book also provides a progressive critique of their impact, although other sources probably go into deeper depth on that score. Since Peet is a social scientist, he doesn't just put the problem down to bad intentions, but down to bad social structures--a refreshing change from some of the simple-minded demonization of the elite you can find in some quarters. Peet particularly analyzes how the role of people's beliefs in shaping their actions within these institutions. In some ways, this is the weakest part of the book. He tries to use an analysis of discourse a la Foucault to explain the working of these organizations, explaining how the hegemony of neoclassical economics shuts out any debates of alternatives. While this is valuable, discourse analysis along can not bear the full weight of analyzing the problems with the unholy trinity--you need some sort of political-economic analysis in the lines of world-systems theory or something to make full sense of these organizations. Indeed, Peet lays out his Foucauldian analysis in the first chapter--and then those ideas barely show up again. Honestly, I would suggest anyone who's not an academic just skip the first chapter and read the rest of the book. You won't miss much. After the first chapter though, the book provides a solid overview of the history of the IMF, World Bank and WTO--and through them much of the process of globalization.

      5 out of 5 stars The Politics of Writing.......2004-05-19

      The Writers of books like Unholy Trnity make very little money for their hard work (usually a few hundred dollars a year for 3-4 years). They write books like this out of political commitment. And then people like "Not Right" (though he or she probably is, Right Wing) criticize the author for responding to an obviously political critique! This book, as the Publishers Weekly review says, provides a scholarly grounding for the anti-WTO, IMF and World Bank protests. The group of students and faculty who worked on it did a splendid job. Read it and you will see.

      1 out of 5 stars Not Right.......2004-05-11

      I think that it is pathetic for one of the authors to actually review and rate his own book. It seems as if this person is obsessed with selling as many copies of his book as possible. This type of greed is exactly what he pretends to be writing against. It is also wrong for someone (perhaps also one of the authors), to attack another reviewer, just because he/she did not like the book. These things say a lot about the author/s of this volume.
      Lending Credibility: The International Monetary Fund and the Post-Communist Transition (Princeton Studies in International History and Politics)
      Average customer rating: 5 out of 5 stars
      • Book Prize Winner
      • An astonishing read
      Lending Credibility: The International Monetary Fund and the Post-Communist Transition (Princeton Studies in International History and Politics)
      Randall W. Stone
      Manufacturer: Princeton University Press
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      ASIN: 0691095299

      Book Description

      With the end of the Cold War, the International Monetary Fund emerged as the most powerful international institution in history. But how much influence can the IMF exert over fiercely contested issues in domestic politics that affect the lives of millions? In Lending Credibility, Randall Stone develops the first systematic approach to answering this question. Deploying an arsenal of methods from a range of social sciences rarely combined, he mounts a forceful challenge to conventional wisdom. Focusing on the former Soviet bloc, Stone finds that the IMF is neither as powerful as some critics fear, nor as weak as others believe, but that the answer hinges on the complex factor of how much credibility it can muster from country to country.

      Stone begins by building a formal, game-theoretic model of lending credibility, which he then subjects to sophisticated quantitative testing on original data from twenty-six countries over the 1990s. Next come detailed, interview-based case studies on negotiations between the IMF and Russia, Ukraine, Poland, and Bulgaria. Stone asserts that the IMF has exerted startling influence over economic policy in smaller countries, such as Poland and Bulgaria. However, where U.S. foreign policy interests come more heavily into play, as in Russia, the IMF cannot credibly commit to enforcing the loans-for-policy contract. This erodes its ability to facilitate enduring market reforms. Stone's context is the postcommunist transition in Europe and Asia, but his findings carry implications for IMF activities the world over.

      Customer Reviews:

      5 out of 5 stars Book Prize Winner.......2004-11-20

      Lending Credibility is the winner of the 2003 Ed A. Hewett book prize awarded annually by the American Association for the Advancement of Slavic Studies for the most outstanding publication on the political economy of the former Soviet Union, East Central Europe, and/or their successor states.

      The book prize committee wrote the following citation about this volume:

      One of the central debates of the transition from socialism over the past decade has been the role of the International Monetary Fund. It is vilified by some as the satanic agent of globalization, and ignored by others who treated democratization as a self-contained process divorced from the messy processes under way in the region's economies.

      These debates about the role of the IMF have generated a lot of heat, but not that much light. Just how much influence did the IMF really have over the economies in transition? And was that influence a help or a hindrance the process of economic transition?

      Randall Stone's book, Lending Credibility, is the first systematic effort to address these questions. It is a major achievement, the result of both careful reflection on how to conceptualize and investigate the problem, and a prodigious amount of effort gathering data.

      A political scientist, Stone addresses one of the standard problems in that discipline: what influence can an international organization (in this case, IMF) have on the domestic policies of member countries (in this case, transition economies). To solve this problem, he deploys a variety of analytical tools. He uses a game-theoretic model of interaction between the IMF, borrower countries, and private investors to derive their equilibrium strategies. The predictions of the model are then tested statistically using a set of monthly data for the 1990s for 26 post-Communist countries, including over 20 variables. In an unprecedented feat of thoroughness, the author complements statistical testing with detailed interviews with dozens of former officials to reconstruct the decision-making process in four of the countries under study and test his theoretical results.

      Stone develops the notion of credibility as the key factor linking IMF leverage to domestic decision making. He comes to a balanced conclusion, neither demonizing nor whitewashing the IMF, but arguing that the IMF can play a pivotal and positive role by using its lending to signal support and encouragement for the adoption of effective policies by national leaders.

      5 out of 5 stars An astonishing read.......2003-11-29

      Quite the read: fluid, sober, well written and systematic in its approach. Pioneering the approach to this question, Randall Stone utilizes many different tools to present his argument and send his message. Not only is it sound in its argument, but also an enjoyable read. Anyone interested in real research about the impact of the IMF should consult this book.
      Modern Banking and Otc Derivatives Markets: The Transformation of Global Finance and Its Implications for Systemic Risk (Occasional Paper (International Monetary Fund), No. 203.)
      Average customer rating: Not rated
        Modern Banking and Otc Derivatives Markets: The Transformation of Global Finance and Its Implications for Systemic Risk (Occasional Paper (International Monetary Fund), No. 203.)
        Garry J. Schinasi , R. Sean Craig , Burkhard Drees , and Charles Kramer
        Manufacturer: Intl Monetary Fund
        ProductGroup: Book
        Binding: Paperback

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        ASIN: 1557759995
        World Economic Outlook September 2006: Financial Systems and Economic Cycles (World Economic Outlook)
        Average customer rating: Not rated
          World Economic Outlook September 2006: Financial Systems and Economic Cycles (World Economic Outlook)

          Manufacturer: International Monetary Fund
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          ASIN: 1589065980

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