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Faculty of Management, University Adriatic , Herceg Novi , Montenegro
Faculty of Management, University Adriatic , Herceg Novi , Montenegro
Faculty of Management, University Adriatic , Herceg Novi , Montenegro
The process of transforming the economy of countries in transition is highly dynamic, turbulent and complex. These circumstances make it difficult to successfully define and implement a proper economic policy, which requires continuous monitoring of the situation in the country, as well as utilization of experiences of other countries in preserving the stability and sustainability of the economy. IMF is one the most influential institutions that monitors the world economic system and plays one of the most significant economic roles in the world. As such, it greatly influences the world economic policy as well as the economic policy of its members, especially the underdeveloped and transition countries. IMF provides advices on economic policies that are not binding. This institution plays an advisory role in economic policymaking. The aim of this research is to point out the consequences of implementing economic policies in countries in transition by relying only on IMF recommendations. Examples of successful and unsuccessful economic transitions of these countries carried out on the basis of IMF recommendations support the confirmation of this thesis. The first part of the paper provides an insight into the basic characteristics and modes of IMF operations. The second part analyzes both the positive and negative sides of cooperation between the countries in transition and the IMF. The last segment refers to the prospective possibility and usefulness for continued cooperation with the IMF.
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