Chapter 25 - Assignment 2: Stanley Fischer on the Asian Crisis

1. Discuss the "surveillance" role of the IMF and the role of Article IV reports. Why does the IMF not make its concerns public?
2. According to Fischer, why does the IMF often require liberalized trade policies as a condition for its loans?
3. Fischer note that IMF programs are often unpopular in countries receiving loans. Why?
4. Provide a succinct summary of Fischer's description of the origions of the Asian crisis.
5. Describe the moral hazard problem associated with the existence of IMF loans. Why does Fischer argue that this is not a substantial problem?