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This book§investigates the impact of International Monetary Fund (IMF) programmes on§macroeconomic instability and economic growth in recipient countries. Employing§the New Institutional Economics approach as an analytical framework, it identifies§the determinants of economic and political institutional quality by taking into§account a broad variety of indicators such as parliamentary forms of§government, the aggregate governance level, civil and economic liberties,§property rights etc. The book subsequently estimates the impact of these§institutional determinants on real economic growth, both directly and also§indirectly, through the channel of macroeconomic instability, in recipient§countries. Moreover, it illustrates the effectiveness of IMF programmes in the§case of Pakistan, a frequent user of IMF resources.§