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The IMF and the policy of low inflation: A review of Article IV consultations for selected Asian developing countries

Published online by Cambridge University Press:  01 January 2023

Ahmed Taneem Muzaffar  and
Anis Chowdhury
Ahmed Taneem Muzaffar*
Affiliation:
University of Western Sydney, Australia
Anis Chowdhury
Affiliation:
United Nations Economic and Social Commission for Asia and the Pacific, Thailand
*
Ahmed Taneem Muzaffar, School of Business, University of Western Sydney, ED.G.161 Parramatta Campus, Locked Bag 1797, Penrith, Sydney, NSW 2751, Australia. Email: taneemm@gmail.com
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Abstract

Spearheaded by the International Monetary Fund (IMF), there has been a rethinking of macroeconomic policies, in particular with regard to targeting inflation at a very low level in the wake of 2008–2009 global economic crisis. We provide a content analysis of the IMF Staff Reports on Article IV consultation of 12 Asian developing countries during the period 2009–2010 in order to see whether that rethinking has been reflected in the IMF’s advice. The findings of this study reveal that the IMF continues with its prescription of achieving low inflationary environment irrespective of country-specific circumstances.

Keywords

E31E52O11O23O53Article IV consultationdeveloping Asiagrowth–inflation relationshipIMFmonetary and fiscal policy

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