ADJUSTMENT WITH GROWTH - RELATING THE ANALYTICAL APPROACHES OF THE IMF AND THE WORLD-BANK

This paper describes and examines simple versions of the analytical approaches employed by the International Monetary Fund and the World Bank in designing adjustment programs that support their lending activities. In the case of the Bank this means essentially a variant of the two-gap growth model, and for the Fund a model derived from the monetary approach to the balance of payments. An attempt is also made to merge the Fund and Bank approaches within a consistent framework to demonstrate their complementarity. © 1990.