An IMF Official Was Quoted as Acknowledging That the Fund's

question 30

Essay

An IMF official was quoted as acknowledging that the Fund's stabilization packages have often led to adjustment without growth.However,he said,"the Fund is a firefighter not a carpenter,and you cannot expect the firefighter to rebuild the house as well as put out the fire." Provide a balanced evaluation of this statement.

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Definitions:

Security Characteristic Line

A graphical representation of the expected return of an asset as a function of the return on the market portfolio, illustrating the asset's systematic risk.

Excess Return

The return achieved by an asset that exceeds the risk-free rate of return.

Excess Returns

Excess returns refer to the returns achieved above a benchmark or a risk-free rate of return.

Market Index

A statistical measure that reflects the overall movement of the market or a specific sector of the market.