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IMF policy recommendations are often criticised for being orthodox, restrictive and prociclycal in their policy recommendations for developing countries. The global financial and economic crisis has led the Fund to publish papers and organize conferences that show some rethinking on these positions. But, to which extent IMF recent willingness to rethinking has led to actual changes in its policy advice to the developing countries?
This new paper by the Brasilia-based International Policy Centre for Inclusive Growth (IPC-IG) analyses recent recommendations given by the IMF to 26 developing countries to assess whether this ‘change’ discourse has been translated into action in the field. Our analysis looked at the recommendations around exchange rate, inflation, fiscal consolidation, employment and social protection policies. It also covers the theoretical debate behind the policies recommended: the underlying arguments, the criticisms received and the IMF’s position.