The Balance of Payments, International Monetary Assistance and Development

  • A. P. Thirlwall


We have seen how the composition of the trade of developing countries can lead to severe balance-of-payments difficulties, which can act as a constraint on growth, and how vulnerable many developing countries are to exogenous shocks which affect adversely both their export earnings and import payments. In this chapter we shall define formally the concept of a balance-of-payments constrained growth rate and examine its determinants. We shall then go on to consider the measures that countries themselves may take to raise the balance-of-payments constrained growth rate, and the assistance provided by international institutions to ease the constraint. The latter involves mainly a consideration of the role of the International Monetary Fund in the provision of balance-of-payments support.


Exchange Rate Current Account Real Exchange Rate Capital Inflow Import Price 
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Chapter 16

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Copyright information

© A. P. Thirlwall 1994

Authors and Affiliations

  • A. P. Thirlwall
    • 1
  1. 1.University of KentCanterburyUK

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