How Do Geopolitics Affect IMF Funding, Conditionality? Some Evidence from the European Central Bank’s Working Paper Series and Our ICRG Data

‘All ICRG indices are forward looking in that they represent expectations about a country’s economic, financial market or political stability prospects. This means that they can better help us to control for macroeconomic prospects rather than just macroeconomic conditions.’

Once bitten: New Evidence on the Link Between IMF Conditionality and IMF Stigma,’ ECB Working Paper (2019).

From Tunisia to Kenya, some countries are questioning if not rejecting IMF programming. Typically, it’s the result of the effects of conditionality on spending and other aspects of reform.

This very good piece in the European Central Bank’s Working Series paper looks at how and why International Monetary Fund conditionality affects program acceptance. Crisis situations and past experiences are instructive. Our ICRG data plays a key explanatory role. Have a look if you have some time:

(https://lnkd.in/eqw5ndme)

With over 7.5 million back tested risk points, appearing in over 1,000 published works, and independently back tested for accuracy and relevance, PRS’ data series continues to produce meaningful empirical findings, profitable asset allocations, and informed corporate planning and valuation.

No other geopolitical risk firm occupies this position in the industry.

Our clients know it.

Our data drives.

The PRS Group
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