Abstract
The principal objective of the International Monetary Fund (IMF), as defined by its articles of agreement, is the correction of balance of payments disequilibrium in member countries. The policies the IMF recommends to reduce the degree and duration of external and internal imbalances that give rise to balance-of-payments difficulties must, however, be set within the context of achieving and maintaining price stability and satisfactory rates of economic growth. In analyzing IMF policies designed to achieve these multiple objectives, it is useful first to consider the circumstances in which the IMF is
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