International Monetary Fund IMF

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International Monetary Fund

The International Monetary Fund—also known as the “IMF” or the “Fund”—was conceived at a United Nations conference convened in Bretton Woods, New Hampshire, U.S. in July 1944. The 45 governments represented at that conference sought to build a framework for economic cooperation that would avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s.

==►IMF describes itself as "an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty".

Development of issues towards IMF

==►In the 1930s, as economic activity in the major industrial countries diminished, countries began to adopt such practices, as to conserve diminishing reserves of gold and foreign currency, some countries restricted foreign imports, some devalued their currencies, and some began policies of complicated restrictions on foreign exchange accounts held by their citizens. These measures lead to great depression of 1930.

World trade declined sharply, as did employment and living standards in many countries.

==►In 1936 “Kens” published a book explaining the procedural way out form depression, his argue was that Demand must be increased and it can be done through government expenditure so governments should take initiative, his argument was a stepping stone towards fiscal policy of today.

==►As World War II came to a close, the leading allied countries considered various plans to restore order to international monetary relations, and at the Bretton Woods conference the IMF emerged.

==►Officially The IMF came int...

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...o provide loans to countries experiencing balance of payments problems. This financial assistance enables countries to rebuild their international reserves; stabilize their currencies; continue paying for imports; and restore conditions for strong economic growth. Unlike development banks, the IMF does not lend for specific projects.

IMF Members Quotas and Voting Power, and IMF Board of Governors:

The Board of Governors, the highest decision-making body of the IMF, consists of one governor and one alternate governor for each member country. The governor is appointed by the member country and is usually the minister of finance or the governor of the central bank. All powers of the IMF are vested in the Board of Governors. The Board of Governors may delegate to the Executive Board all except certain reserved powers. The Board of Governors normally meets once a year.