Abstract
This study examines the impact of the IMF programs on balance of payments, inflation, and economic growth of the program countries. The policy instruments used: currency devaluation, reduction in government budget and domestic credit, and increase in real interest rate. The findings show that Fund, in general, improve the rate of growth in real GDP, the inflation rate, and the current account balance in the short-run. As to their effectiveness, real interest rate targeting appears to be the most effective tool. The second important variable is the growth in domestic credit. Fiscal policy and devaluation come next in terms of effectiveness [F32].
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