ABSTRACT
The IMF may be viewed as both a financing and an adjustmentorientated institution. Through the prolonged debate there has been about Fund conditionality it is the adjustment role that has received the greater scrutiny, but it is important not to lose sight of the financing role. Indeed, an optimal strategy for dealing with balance of payments deficits is always likely to involve a combination of adjustment and financing;23 and the role of the Fund may be perceived as trying to ensure that this optimal blend is achieved both globally and at the level of individual countries.
