The International Monetary Fund

YOU MAY ALSO FIND THESE DOCUMENTS HELPFUL

• INTERNATIONAL MONETARY FUND Research Paper

  ...INTERNATIONAL MONETARY FUND During the Great Depression of the 1930s, countries attempted to shore up their failing economies by sharply raising barriers to foreign trade, devaluing their currencies to compete against each other for export markets, and curtailing their citizens' freedom to hold foreign exchange. These attempts proved to be self-defeating. World trade declined sharply (see chart below), and employment and living standards plummeted in many countries. This breakdown in international monetary cooperation led the IMF's founders to plan an institution charged with overseeing the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to buy goods and services from each other. The new global entity would ensure exchange rate stability and encourage its member countries to eliminate exchange restrictions that hindered trade. By the early 1960s, the U.S. dollar's fixed value against gold, under the Bretton Woods system of fixed exchange rates, was seen as overvalued. A sizable increase in domestic spending on President Lyndon Johnson's Great Society programs and a rise in military spending caused by the Vietnam War gradually worsened the overvaluation of the dollar. End of Bretton Woods system The system dissolved between 1968 and 1973. In August 1971, U.S. President Richard...

  2568  Words | 6  Pages

• International Monitory Fund Essay

  ...IMFActivities…………………………………………………. 05 IV. Criticism & References …………………………………………. 06 The International Monetary Fund is an international organization. There are 188 member countries of IMF. It has a strong governing body. The chart of IMF has been given bellow- Source:http://www.imf.org/external/np/obp/orgcht.htm Foundation of IMF International Monetary Fund is an organization created in 1945. It is an organization of 18 ion argued for a fund which could help the member nations economically, during the time of crisis, whereas the US delegation wanted a bank like institution, from where the member countries could borrow money, which would have to be repaid in time. Finally, the US view was accepted.8 countries. There is a background behind the foundation of IMF. The early years of the 20th century witnessed the “Great Depression” of the 1930s and the two World Wars. This Resulted in the collapse of the total global economic system, thereby affecting international trade. As a result, all the countries were reeling with unemployment and plummeting living standards. IMF was founded by the Bretton Woods Conference. A meeting of 730 delegates, from the 44 allied nations, was held at the Mount Washing Hotel, situated in bretton woods , New Hampshire, United states. The meeting lasted for 22 days- July 1 to 22, 1944, and the...

  900  Words | 4  Pages

• International Financial Institutions Essay

  ...International financial institutions International financial institutions refer to financial institutions that have been established by more than one country, and are subject to international law. Their owners or shareholders are generally national governments, although other international institutions and organizations occasionally figure as shareholders. The World Bank, the International Monetary Fund and the European Investment Bank are international financial institutions. The World Bank provides leveraged loans to developing countries for capital programs. It was created in 1944 during the Bretton Woods Conference, the United States and the United Kingdom dominated negotiations even though other countries were attending. The World Bank's current focus is on the achievement of the Millennium Development Goals, lending primarily to middle-income countries at interest rates which reflect a small mark-up over its own borrowings from capital markets. The Bank’s mission is to aid developing countries and their inhabitants to achieve development and the reduction of poverty. The World Bank sees the five key factors necessary for economic growth and the creation of an enabling business environment as: 1. strengthening governments and educating government officials. 2. Implementation of legal and judicial systems for the encouragement of business,...

  726  Words | 3  Pages

• Essay about International Monetary Fund

  ...The International Monetary Fund: Its Present Role in Historical Perspective* Prepared for the U.S. Congressional International Financial Institution Advisory Commission * For valuable and timely research assistance we thank Debajyoti Chakrabarty. For helpful comments on an earlier draft we thank Jim Boughton. Table of Contents 1. Introduction 2. What does the IMF do? 3. Origins and Original Aims 4. The IMF’s Role in the Post Bretton Woods Era: Externalities and Public Goods? 5. The IMF in Search of a Mission 6. International Politics and the IMF 7. Conclusion: Some Issues in the Case for Reform References Tables 1. Average Time Spent in IMF Programs by Class of Borrowers 2. Arrears in the IMF Figures 1. IMF Quotas as a Share of World Imports 2. IMF Charges and Commercial Interest Rates 3. Total Fund Credit Outstanding to Members 4. Low Interest IMF Lending 5. Transactions of the International Monetary Fund, 1955 – 1997 1. Introduction After 55 years of existence there are strongly conflicting views on the importance and role of the IMF for today’s international economy, and on its effectiveness. On the one hand there are those who see the Fund as having adapted well to the changing world environment with perhaps the...

  14509  Words | 39  Pages

• Imf International Monetary Fund Essay

  ...What does the International Monetary Fund do? The IMF is the world's central organization for international monetary cooperation. It is an organization in which almost all countries in the world work together to promote the common good. The IMF's 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 buy goods and services from each other. This is essential for sustainable economic growth and rising living standards. To maintain stability and prevent crises in the international monetary system, the IMF reviews national, regional, and global economic and financial developments. It provides advice to its 188 member countries, encouraging them to adopt policies that foster economic stability, reduce their vulnerability to economic and financial crises, and raise living standards, and serves as a forum where they can discuss the national, regional, and global consequences of their policies. The IMF also makes financing temporarily available to member countries to help them address balance of payments problems—that is, when they find themselves short of foreign exchange because their payments to other countries exceed their foreign exchange earnings. And it provides technical assistance and training...

  7729  Words | 25  Pages

• International Trade Agreements and Organizations Essay

  ...International Trade Agreements and Organizations The Increase of Globalization Showed a dramatic increase after WW2 Why? Growth in… Communication Technology Travel Baby Boom Advantages of Globalization Outsourcing Lower prices Improved human rights Increased productivity Innovation (due to increased competition) Disadvantages of Globalization Loss of local jobs Exploitation of cheap labour Pollution Disease Unhealthy products being spread around (e.g. drugs, fast food) Increase in income gap (the rich get richer, the poor get poorer) A History of Trade Agreements Increase in globalization coincides with formation of IMF and World Bank 1944 Bretton Woods Conference Led to formation of many trade organizations Trade Agreements: An enforceable treaty between two or more countries that addresses the movement of goods and services, eliminates trade barriers, establishes terms of trade, and encourages foreign investment Types of Agreements Multilateral Involve three or more parties NAFTA, European Union Bilateral Involve only two parties Canada-Costa Rica Free Trade Agreement, Canada-Israel Free Trade Agreement NAFTA Review Advantages? Increased jobs in all countries involved Job creation Access to raw materials, talent, capital, technology Allows North America to be competitive against rest of the world Disadvantages? Jobs are lost to Mexico due to low labour costs Wage gap has risen in US Increase in...

  895  Words | 6  Pages

• International Relations, conflicts,research methodology Essay

  ... IMF (International Monetary Fund) is an international organization. It is responsible for managing the global financial system and for providing loans to its member states to help alleviate economic problems. WHAT IS IMF?It is an organization of 188 countries ,working to foster global monetary cooperation , secure financial stability ,facilitate international trade ,promote high employment and sustainable economic growth and reduce poverty” .The IMF is the most detailed attempt to organize the conduct of international monetary affairs.Agreement for its creation came at the United Nations Monetary and Financial Conference in Bretton Woods[?], New Hampshire, USA, in 1944; the organisation came into existence in 1946, as part of a post-WWII reconstruction plan, and began financial operations on March 1, 1947. Accordingly, it is sometimes referred to as "a Bretton Woods institution", along with the Bank for International Settlements and the World Bank. Together, these three institutions define the monetary policy shared by almost all countries with market economies. In order to gain access to IMF loans, BIS privilege, and strategic World Bank development loans, a country must normally agree to terms set forth by all three organizations.The IMF describes itself as “an organization of 188 countries, working to foster...

  1643  Words | 5  Pages

• Essay about Unit Test International Trade in the Modern World

  ...BBB4M1 – Unit 2 Test International Trade in the Modern World Part A: True and False (15 Marks) / 15 Answer the following questions with true (T) or false (F). Correct the false statements T T 1.___ T T Positive effects of globalization include: improved human rights, increased productivity, and innovation. 2.___ F F Trade agreements are beneficial because they eliminate trade barriers and encourage foreign investment. 3.___ The North American Free Trade Agreement (NAFTA) is advantageous for Canada because manufacturing jobs have been sent to Mexico where labour is cheaper. T T T – Losing manufacturing jobs to Mexico, because of cheap labour is a disadvantage because it decreases the manufacturing sector in Canada, losing skilled and unskilled labour jobs. 4.___ T T A common currency decreases the risk of exchange rate fluctuations. 5.___ F F The Group of Eight (G8) and Group of Twenty (G20) discuss macroeconomic issues such as economic growth, trade liberalization, and helping developing countries. 6.___ Organizations such as the United Nations (UN) do not concern themselves with economic issues. Instead, they only focus on human rights and international peace. T T T – The UN is highly involved in the international economy. They are responsible for organizations that affect international business. They also endeavour to improve economic conditions...

  982  Words | 6  Pages