Ok, so my understanding of balance of payments crises is when a country (who might be doing completely fine otherwise) doesn't have enough foreign currency (typically dollars) to pay back debt.

If the country were otherwise fiscally sound, couldn't the IMF basically intervene and lend said country dollars for the short term? I get that the IMF has to be a lender of last resort and doesn't want to incent future "bad" behavior, and so some countries do not want to borrow from the IMF because they don't want to have to take austerity measures. But, if the IMF were lenient enough and we increased its quota, couldn't we put an end to all balance of payments crises?



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