IMF liquidity pricing could save countries hundreds of basis points.
The article discusses a way to determine the cost of the International Monetary Fund's promise to provide financial help to countries in need. The researchers use a method based on comparing this promise to a type of financial option. Their calculations show that the value of this promise can vary greatly, from a few to hundreds of basis points, depending on factors like the country's financial stability, the unpredictability of money flowing in and out of the country, and the amount of money needed to pay off the country's debts to other countries.