Series: IMF Working Papers
Author(s): Wolfgang Mayer , and Alex Mourmouras
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 September 2007
Keywords: international assistance, incentives, optimal contracts, special interest groups, adverse selection, sovereign default, political instability, interest, interest group, repayment
International financial assistance (loans and grants) can potentially raise recipients' welfare in two ways, by affecting a direct resource transfer and by facilitating efficiency-enhancing reforms. In practice, ba...