Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
INTERNATIONAL MONETARY FUND
INTERNATIONAL MONETARY FUND
The international monetary community
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: INTERNATIONAL MONETARY FUND
1. Introduction
1.1 What is the International Monetary Fund (IMF)?
“The International Monetary Fund is an organisation that provides short-term credit to 186 member nations. The International Monetary Fund works to maintain orderly payments arrangements between countries and to promote growth of the world economy without inflation. It supports free trade in goods and services. To stabilize its members’ economies, the IMF provides policy advice and short-term loans when a member nation encounters financial difficulty.”
World Book, Inc
1.2 The history of the International Monetary Fund (IMF).
The International Monetary Fund was designed during World War II by men whose
worldview had been shaped by the Great War and the Great Depression. Their views on how the post-war international monetary system should function were also shaped by their economics training and their nationalities. To prevent a reoccurrence of monetary and financial instability, the Conference established the International Monetary Fund (IMF). The IMF started in July 1944, when 45 governments and their representatives held a meeting in the town of Bretton Woods, New Hampshire, in the North Eastern United States, they agreed on a framework for international economic cooperation.
As result to the meeting they draft a charter of an international institution to oversee the international monetary system and to promote both the elimination of exchange restrictions relating to trade in goods and services, and the stability of exchange rates. The main role of the IMF was to stabilize the exchange rate, prevent crisis, and resolution of crisis.
After the IMF began functioning as an institution, its evolution was similarly driven by a combination of political even...
... middle of paper ...
...cies for these new situations had to be adapted quickly, and yet many elements of the old doctrine survived, dinosaurs at times, at odds with the new reality of these external crises confronting the developing economies.
Works Cited
1. Bannock,G. Davis,E.etl. The New Penguin Business Dictionary. 2002. Strand:London. Pg 267.
2. Boughton, James M. The IMF and the Force of History: Ten Events and Ten Ideas that Have Shaped the Institution.2004. http://www.imf.org [Web Accessed: 27 April 2010].
3. Fetzer,S. Company. The World Book Encyclopedia: I volume 10. United States of America. 2001.
4. Frenkel, R. Current problems with the IMF: Briefing paper. 2007. http://library.fes.de [Web Accessed: 27 April 2010].
5. Fundamental Disequilibrium:Role in Balance-of-payments Accounting. Britanica-eb.com. http://www.britannica.com [Web Accessed: 26 April 2010].
These international economic institutions should possess substantial transparency considering their policies directly affect the public. Instead, the IMF and similar institutions have no accountability to the public of which it is supposed to serve. Through lack of transparency, countries with major influence in the IMF such as the U.S. can indirectly impose its own investment agenda upon the country in crisis. If actions of the IMF were directed through a democratic process, more logical and productive policies would develop. If the IMF promotes transparency through the policies it imposes on developing countries, it should set an example through its own governance.
Nevertheless, the problem with the IMF is that they come to the table when the damage is already so far gone that they require such drastic cuts to everything, ensuring that the public cannot sustain its way of living, thereby turning on the government that is trying to fix the problem, who as a result, cuts back on the austerity measures. In Greece’s case, the IMF only added to the debt, each time failing to ignite the Greek economy and in this circumstance, exacerbated the situation. The lack of integrity in hiding their true debt, the Greek government didn’t help matters, as well as national pride of both the Greeks and the Germans, borrower and lender. This tragic saga with the dueling prides, caused the IMF to change its lending rules. “If private creditors are simply paid off with IMF money, there is less incentive for a country to pursue reforms needed to improve its debt profile” (Matthew heller, 2016). In other words, they learned a lesson: lending to a state that doesn’t have control over its currency isn’t always the best course of
Massachusetts Institute of Technology. (2000). The IMF and the World Bank: puppets of the neoliberalism onslaught. Retrieved April 05, 2014, from MIT website: http://www.mit.edu/~thistle/v13/2/imf.html
New economic institutions such as the World Bank, sought to spread the principles and practices associated with free market economies throughout the world by creating programs and lending money to countries, which allowed the people of that country to practice free market economic principles. The World Bank was originally created to help rebuild Europe from the vast destruction caused by World War Two. During the post WWII period the World Bank lent money to many European countries which has greatly helped them recover from their losses from WWII. For example the World Bank lent $250 million to France in 1947. That loan helped France rebuild its economy by creating jobs and infrastructure which later helped push the countries stagnant economy into the stronger free market economy of today.
According to Lear Economics, the International Finance Corporation (IFC) have as member 179 countries. it was created in 1956, this corporation is responsible to foment the economic in developing countries with the help of private sect...
The IMF plays a pivotal role in the international economy system. As its initial goal about reconstructs world’s international payment system, such as contributes to surveillance of the global economy, to stabilize exchange rates, to lend money to help countries to resolve emergency situation but with certain conditions and should pay back in a short time. The IMF has done a large number of things to help the world economy, not only in the western countries, but in many developing countries as well.
The International Monetary Fund is to prevent economic problems from turning into global ones. If any country has issues, the IMF will offer loans and advice in, but of course this comes with a price. In exchange for money, they would want to change certain policies, in an attempt to stop...
I, like many people, have always heard about the International Monetary Fund in the news yet never really knew or understood its inner workings, this report over views what the International Monetary Fund is, how it works, and how it is currently involved internationally. The International Monetary Fund (IMF) is a form of world credit union that has 187 countries involved, a near global involvement. The International Monetary Fund’s was founded in the aftermath of World War II in 1945 along with the International Bank for Reconstruction and Development (IBRD) and the General Agreement on Tariffs and Trade (GATT) as an agency of the United Nations. The International Monetary Fund’s goal is to promote trade and exchange stability globally. The 187 members each pay a monetary amount to the International Monetary Fund based on their individual economic size, the current biggest contributor being the United States of America. Some major crises the IMF is involved in are aiding in rebuilding Haiti, the economic crash of Iceland and the financial problems in Greece.
The International Monetary Fund (IMF) was established in 1946, along with the World Bank. The IMF was developed to promote all monetary cooperation and remedy economic problems incurred during the post - war reconstruction period (Baylis; 2008: 245). The IMF was therefore considered as the “rule keeper” and an important component in public international management. In the pursuit to stabilise the exchange rate system, the IMF reserves the authority to change exchange rates. Another vital role is control over the balance of payments deficit of states and governing the policies which affect states monetary systems (Spero; 1990: 33). However, since the 1980 's, the IMF 's role has settled into the position of an institution providing assistance, based on financial situations, to developing countries. In order for countries to receive any assistance, the
the effect that the work of the IMF and the World Bank have had on the
The IMF was created at the end of WWII in order to create a framework for global economic cooperation without creating a second Great Depression. Since its creation it has evolved to tackle a variety of economic issues. The goal of the IMF is to help the governments of member countries “take advantage of the opportunities- and manage the challenges- posed by globalization and economic development more generally.” It tracks global economic trends and performance, alerts member countries of potential problems, provides of forum to discuss policy, and helps governments in times of economic hardship. It provides policy advice and financing to member countries suffering from economic adversity. Additionally, it aims to create...
Other participating countries of the international forum will cut trades and other foreign exchange, causing a major loss in that particular country. Not only is it harmful to their financial stability, it can also damage their relationships with others. Under the pressure of other nations, many governments will feel that they have no other choice but to join and adapt to this policy.
The International Monetary Fund (IMF) works to foster economic growth and economic stability, which is an association that mainly creates the stability in exchange rates and offers temporary loans for the state members in order to tackle their balance of payment problems. Beside, the members contribute their national currencies to the IMF pool for providing loans to deficit countries. In addition, the IMF article of agreement has emphasized that the members had to peg their currencies to gold or US dollars. The IMF utilizes its gold holdings to acquire dollars and other currencies for its operations. The capital of the IMF consists of the aggregate of the quotas allotted to the member countries member can pay its quota in its national currency. Therefore, the developed countries (DC) hold the significant powers in IMF.
The International Monetary Fund (IMF) is an international organization of 186 countries. It works to help the development of global monetary co-operation. It secures the financial stability and facilitates international trade. It reduces the high unemployment rate and promotes the sustainable economic growth. Main goal of IMF is to reduce the poverty around the world. IMF works to help development of global growth and economic stability. It provides policy advice and financing to its members, in economic difficulties. It also works with the developing nations to help them in achieving macroeconomics stability and reducing poverty. [1]
In the year of 1327, Kind Edward III of England defaulted on his Italian debts. This caused the banks of Bardi and Peruzzi in Florence to collapse. Who would know that over 650 years later, the world would still have these types of problems? After World War II, the need for an organization like the IMF was finally realized. After the war, politicians and economists began to work on blue prints for a postwar world. They envisioned a liberal international economic order, based on stable world currencies and revived world trade. The International Monetary Fund (IMF) finally came into existence on December 27, 1945. On this date, twenty-nine countries signed its charter when meeting at Bretton Woods, New Hampshire. On March 1, 1947 the IMF came into financial operations.