International Monetary Fund Role : Imf

1275 Words6 Pages
International Monetary Fund Role According to their website (www.imf.org), the International Monetary Fund (IMF) 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 around the world. The organization was created in 1945 and is governed by and accountable to the 188 that make up its near-global membership. Some notable countries that are part of the IMF are the United States, Japan, and China. Months prior to the crash, reports from the IMF on the developing Asian economies were positive and commended the countries for their ability to operate within the larger scale global economy. Months later, the IMF was forced to develop multibillion dollar emergency packages for the same countries. A year later other countries, such as Russia and Brazil, too required support and billions of dollars. In total, the IMF arranged around $184 billion in an attempt to maintain the global economy. Part of the IMF emergency packages included the enforcement of shutting down failing banks and other financial institutions with significant debts followed by raising domestic interest rates. The idea was to reestablish the confidence that the nations affected by the crisis would be able to repay their long term debts by penalizing the bankrupt companies. Effect on the United States Though the markets didn’t collapse in the
Get Access