Creditors and Crowds : How Public Support Moves Markets and IMF Lending

Combining cross-country data and firsthand interviews, this book reveals how citizens shape IMF programs' design and consequences, despite lacking formal power. Essential for students, researchers, and policymakers, it shows why public opinion matters during economic crises and its real-world impact on global financial decisions.

When a government participates in an International Monetary Fund (IMF) program, media coverage often highlights strong public reactions in the borrowing country, marked by mass mobilization and protests. In Creditors and Crowds, Sujeong Shim asks if public opinion matters for resolving economic crises. She shows how public opinion is pivotal to shaping global financial outcomes and reveals how public support for a government shapes the interactions among borrowing governments, IMF officials, and private portfolio investors. Combining cross-country data, case studies, and interviews, the author shows that public support for governments affects IMF programs' design and consequences. Using practical examples and comparative insights from Greece, Latvia, South Korea, Sri Lanka, Pakistan, and more, Shim highlights the often-overlooked role of public opinion in international finance and offers lessons for governments navigating crises.