The International Monetary Fund Essay

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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.”
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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
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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 a
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