Empirical Evidence
There is some evidence that IMF stabilization programs do have a positive impact on the balance of payments and the current account.(Citation needed) However, evidence for reductions in inflation, and encouragement of growth, is rather limited and questionable. (citation needed) The case of Argentina' structural adjustments caused an augmentation of inequality and poverty.
There are some serious problems in measuring the empirical success of Fund programs. It is extremely difficult to calculate the counterfactual; that is, what would have happened had the Fund not intervened. Indeed, the 'before and after' evidence of success in the balance of payments is weaker than calculations of success relative to the counterfactual.
Read more about this topic: Structural Adjustment
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