IMF s Financial Programming

IMF's Financial Programming Ravindra H Dholakia IN a recent paper, Ranjit Sau [1992] has argued that the IMF's financial programming based on the monetary approach to the balance of payments is incomplete and hence inadequate as a framework for policy formulation. He has tried to show this with the help of a simple static Keynesian macro- economic model and some stray statistical evidence from the Indian economy. There are several weaknesses in his argument. The major ones are as under: