The International Monetary Fund Essay - 2551 Words

1. Introduction 1.1 What is the International Monetary Fund (IMF)? â€Å"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†¦show more content†¦The cumulative effect of history on the institution has been rather more profound and requires a longer and larger perspective. The fixed but adjustable exchange-rate system ended in August 1971 when President Nixon closed the gold window, ending the U.S. commitment to keep the dollar price of gold at $35 per ounce. In 1973 the month of March, major countries agreed that the fixed exchange-rate system would not be restored. Thereafter, currency values would be determined in various ways ranging from freely floating exchange rates at one end to firmly fixed exchange rates at the other. By then, many countries had removed exchange controls on both trade and capital movements. The international economy faced a new challenge; they had to reconcile growth, low inflation and high employment with open trading arrangements and international capital mobility. The oil shocks of the 1970s and the mistaken economic policies in many countries that produced large deficits and inflation increased the difficulty of achieving these goals and objectives. Nothing in the founding mission or the accumulated experience of the IMF prepared it to deal with these evolving challenges. 2. How the IMF help with the financial crises and their problems. 2.1 The Bretton Woods agreement The Bretton Woods framework was necessary to avoid aShow MoreRelatedInternational Monetary Fund1220 Words   |  5 PagesThe IMFs primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with one other. This system is essential for promoting sustainable economic growth, increasing living standards, and reducing poverty. The Fund’s mandate has recently been clarified and updated to cover the full range of macroeconomic and financial sector issues that bear on global stability. TheRead MoreThe International Monetary Fund ( Imf )985 Words   |  4 PagesThe International Monetary Fund (IMF) was one of the many international organizations that emerged after the end of World War II. The primary function of the IMF is to promote the international financial stability and spur monetary cooperation. Many countries see the IMF as a â€Å"lender of last resort† (Thacker, 1999:38), meaning countries borrow money from the Fund for â€Å"short-term balance of payment support† (Steinwand and Stone, 2007:11) in order to avert the collapse of their domestic economies.Read MoreInternational Monetary Fund ( Imf )2266 Words   |  10 PagesAims/Purpose International Monetary Fund (IMF) aims to maintain and defeat and sometimes to restrain the financial crises. (BBC, 2012) Basically it was created to avoid another Great Depression with an economical cooperation. It was founded more than 60 years ago at the end of the II World War. (International Monetary Fund, 2015) Mostly the institution has directed to focus the developing world. Nowadays there are few purposes of the IMF such as monetary stability, exchange rate stability, facilitateRead More International Monetary Fund Essay2125 Words   |  9 PagesInternational Monetary Fund Intro: In July 1944, the United Nations Monetary and Financial Conference met in Bretton Woods, New Hampshire, to find a way to rebuild and stabilize the world economy that had been severely devastated by World War II. One result of the conference was the founding of the International Monetary Fund (IMF) through the signing of its Articles of Agreement by 29 countries. The stated purposes of the IMF were to create international monetary cooperation, toRead MoreInternational Monetary Fund ( Imf )3071 Words   |  13 PagesGLOBAL BUSINESS SUSTAINABILITY INTRODUCTION International Monetary Fund (IMF) is an organization consisting of 188 nations functioning towards global monetary cooperation, ensuring financial stability, minimizing poverty around the world (IMF, 2014). In this report its functions of IMF and its effectiveness have been explained to describe minimizing financial imbalances by the countries. UK has been the main focus in this study. The impact of IMF policies on social and environment in UK and howRead MoreThe International Monetary Fund ( Imf ) Essay2250 Words   |  9 PagesIntroduction: The International Monetary Fund (IMF) is an international organization created in 1945 to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and to reduce poverty around the world. The IMF is governed and accountable to the 189 countries that make up the global membership of the organization. These goals make up the IMFs formal rules, the informal rules allow more access for powerfulRead MoreThe International Monetary Fund ( Imf )1501 Words   |  7 PagesTHE INTERNATIONAL MONETARY FUND (IMF) The IMF was set up during the Second World War in the year 1944. It started operation in 1947 and it has been working with the UNO since. Its headquarters is in Washington D.C in America. IMF provides short term loans to countries having problems of balance of payments. It also provides technical advice to its members and ensures free flow of trade by removing all trade restrictions. It establishes and maintains stable exchange rate between member countriesRead MoreThe World Bank And The International Monetary Fund1505 Words   |  7 PagesEconomics in an International Context Essay Name: Yousef Al Zarafy Module Code: FC006 - Economics in an International Context Module Teacher: Georgina Chapman Assessment Type: Individual Essay Assessment Title: â€Å"Africa needs to be rich - rather than green† claims Matt Ridley. Would this statement also apply to developing economies? Using clear Example, discuss the role and influence of The World Bank and the International Monetary Fund in the developing countries of Europe. Submission DateRead MoreInternational Monetary Fund And The World Bank1679 Words   |  7 PagesIMF - HIPC International Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial powerRead More The International Monetary Fund (IMF) Essay1888 Words   |  8 PagesThe International Monetary Fund (IMF) International Monetary Fund (IMF), international economic organization whose purpose is to promote international monetary cooperation to facilitate the expansion of international trade. The IMF operates as a United Nations specialized agency and is a permanent forum for consideration of issues of international payments, in which member nations are encouraged to maintain an orderly pattern of exchange rates and to avoid restrictive exchange practices.