The International Monetary Fund (IMF) Essay

conducts the country's money-related approach to advance the stability of prices, increase employment and long-term loan costs in the U.S. economy;

5. To promote long term balances growth of international trade and the maintenance of equilibrium in the balance payments of member countries by encouraging long term international investments.

The total value of a nation’s exports compared to the value of the International Monetary Fund

The International Monetary Fund (IMF) was created in the mid-1940s as a direct result of the chaos created by the individual central banks before and during the Great Depression. With the advent of economic globalization, it became clear that the uncoordinated policies of individual central banks was becoming a hindrance to global growth and financial stability. In December 1944, the IMF formally came into existence with 29 members, each agreeing to cooperate on the international stage to stabilize exchange rates and

I think if each country represented in the IMF had a board dedicated to it, and each board had ambassadors that served as liaisons between countries and the IMF, there would be more room for discussion and formulation of plans that would better serve said countries not only in times of crisis, but once the crisis had been addressed. The ambassadors would address the needs of the country and obtain loans with repayment plans based not on capitalism but on goals that rebuild the country, such as a certain amount of the money going towards education or infrastructure as opposed to forcing a country into a plan that just won't

In june of 2012, the world bank committed about $52.6 billion in loans, grants, equity investments, and helps in promoting economic growth, poverty and economic enterprise. The IMF promotes international monetary cooperation and also provides policy advice and technical assistance which helps countries maintain strong economies. The world bank promotes long term economic development and poverty reduction by providing technical/financial support to help countries reform.

All three countries actively follow the guidelines of these major international institutions. According to Managing Director of the IMF (Kohler, 2002), “There has been a near-revolution in transparency at the IMF, and a steady improvement in the release of economic information by our member countries.” It is essential for countries to be transparent in their annual checkups from the IMF in order to keep all member countries up to date on economic data in countries they have financial dealings with. This information is what keeps countries from financial crisis. The United States is the largest shareholder of the World Bank and is the only country with veto power over changes in structure, therefore the US plays a major role in developing and supporting the World Bank’s mission (The World Bank, 2013). Since 1998, France has only been a respondent to 4 dispute cases (World Trade Organization), which shows that they actively try to follow the guidelines.

The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustments.

Surveillance involves the monitoring of economic and financial developments, and the provision of policy advice, aimed especially at crisis-prevention. The IMF also lends to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems; loans to low-income countries are also aimed especially at poverty reduction. Third, the IMF provides countries with technical assistance and training in its areas of expertise. Supporting all three of these activities is IMF work in economic research and statistics (What the IMF Does).

is accomplished through loans to struggling countries. In addition to the World Bank, the International Finance Corporation was annexed to provide loans to corporations who are seen to help aide in poor countries’ development. These three organizations

In post-conflict countries, the process of disarmament, demobilization and reintegration following the end of direct-violence require the crucial step of economic revitalization and job creation. Intergovernmental agencies, such as the International Monetary Fund (IMF), assist the government to provide aid, support and international monetary stability. Post-conflict reconstruction of war-torn nations often relies on loans from the IMF, which are stipulated

In addition, the policies have been criticized in terms of their effectiveness in meeting the narrow objectives set by the IMF. Under half those accepting IMF loans achieve their balance of payments and inflation objectives, and only one-fifth achieve their growth targets, Hodd (1987:336) This assessment of the financial institutions shows that they do assist in Africa with their balance of payments at that time but in the long run it causes debts for the African states as they will have to pay the loan bank with interest. When the loan is paid with interest, it draws back the states and this means that they will be focusing on paying the IMF loan instead of developing their countries and the problem is that the payment period for this loan is very short which puts pressure for the states to pay back the

Furthermore, with the help of the expansionary policy the proper amount required by the nations would be gained. Due to the presence of the equilibrium the Contractionary polices would be providing no harm to the binds that are bought by the Bank of these economies (Madhavani & Sachdeva, 2014).

Here the International Monetary Fund and the International Bank for Reconstruction and Development, later divided into the World Bank and Bank for International Settlement, were established. To regulate the international policy economy these institutions become known as the Bretton Woods institutions and became operational in 1946. The IMF, founded to stabilize countries' currencies in relation to each other, holds money in trust, which member countries can borrow according to terms set by the institution. The World Bank instead gives more long-term loans and sells bonds to corporations and governments, which bind the issuer to pay the bondholder the amount of the loan plus interest. However, the countries taking advantage of the opportunity to borrow money to improve their affected economy are obliged to launch a set of policies, known as the Washington Consensus, which was first presented in 1989. The reforms introduced by the Institute for International Economics include "deregulation, privatization, currency devaluation, social spending cuts, lower corporate taxes, export driven strategies, and removal of foreign investment restrictions" . More, "these loans are only granted when the countries agree to the adoption to a comprehensive programme of macro-economic stabilization and structural economic reform."

1.The international financial institutions (IFIs) are central pillars and the architects of the global economy. The world bank and IMF were founded and funded by the United states after the second world war to build shattered world economy after the war and great depression of the 1930s (socialist alternative,). The creation of the IFIs was to bring about a global economy after the “isolation economy” which some argue brought about the Second World War. The IFIs were to help the economy of the less developing countries (LDCs) to bring about growth and development, a phenomenon known as globalization.