Emerging Markets in the International Monetary Fund: A Proposition of a New Quota-Formula

The article proposes a new quota-formula that intends to improve governance within the International Monetary Fund. Quotas are important because they define, among other issues, voting power. The quota-formula proposed includes GDP measured in Purchase Power Parity (PPP) as the most important variab...

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Bibliographic Details
Published in:Revista de economia Mackenzie 2006-06, Vol.4 (4), p.53-62
Main Author: Fernando Ribeiro Leite Neto
Format: Article
Language:Portuguese
Subjects:
emerging markets
international monetary fund
quota-formula
Online Access:Get full text
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Summary:The article proposes a new quota-formula that intends to improve governance within the International Monetary Fund. Quotas are important because they define, among other issues, voting power. The quota-formula proposed includes GDP measured in Purchase Power Parity (PPP) as the most important variable. Current account is introduced in the quota-formula by its standard deviation over a 12-year average. Stock of international reserves is the last variable in the quota-formula. Results show a decline in the quota-share as well as in votingshare of developed countries. Selected emerging markets would see a rise both in quota-share and in voting-share.
ISSN:1678-5002
1808-2785