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International Monetary Fund: Presented By: Suhana Jeelani Khan
International Monetary Fund: Presented By: Suhana Jeelani Khan
International Monetary Fund: Presented By: Suhana Jeelani Khan
MONETARY FUND
Presented by: Suhana Jeelani khan.
IMF
What is IMF:
TheInternational Monetary Fund(IMF) is an
international organization headquartered in
Washington, D.C., in theUnited States, It is an
organization comprising 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 around the world. Formed in 1944 at
theBretton Woods Conference, it came into
formal existence in 1945 with 29 members.
History:
Objectives
Functions
Upon initial IMF formation, its two primary functions were: to oversee the
fixed exchange ratearrangements between countries, thus helping national
governments manage theirexchange ratesand allowing these governments
to prioritise economic growth, and to provide short-term capital to aid
balance of payments.This assistance was meant to prevent the spread of
internationaleconomic crises. The IMF was also intended to help mend the
pieces of the international economy postthe Great Depressionand
World War II.
The IMF's role was fundamentally altered after thefloating exchange rates
post 1971. It shifted to examining the economic policies of countries with
IMF loan agreements to determine if a shortage of capital was due to
economic fluctuationsor economic policy. The IMF also researched what
types of government policy would ensure economic recovery. The new
challenge is to promote and implement policy that reduces the frequency of
crises among the emerging market countries, especially the middle-income
countries that are vulnerable to massive capital outflows. Rather than
maintaining a position of oversight of only exchange rates, their function
became one of surveillance of the overall macroeconomic performance of
member countries. Their role became a lot more active because the IMF now
manages economic policy rather than just exchange rates.
Criticism.
Quota system
U.S influence
Borrower, creditor divide