New IMF Deal A Leap Of Faith

June 2008 | Economic Analysis

By agreeing to abandon the previous Stand-by arrangement with the Dominican Republic, the IMF is demonstrating a great deal of confidence in the economic policies of President Leonel Fernández and his administration. Despite improving macroeconomic fundamentals since 2003's banking crisis, we caution that amid double-digit inflation and greater global macroeconomic uncertainty, the Fund may be demonstrating a little too much confidence in a still fragile economy.

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.