Role of the International Monetary Fund

1923 Words4 Pages
bulb-icon

Recommended: The roles of imf and world bank

I, like many people, have always heard about the International Monetary Fund in the news yet never really knew or understood its inner workings, this report over views what the International Monetary Fund is, how it works, and how it is currently involved internationally. The International Monetary Fund (IMF) is a form of world credit union that has 187 countries involved, a near global involvement. The International Monetary Fund’s was founded in the aftermath of World War II in 1945 along with the International Bank for Reconstruction and Development (IBRD) and the General Agreement on Tariffs and Trade (GATT) as an agency of the United Nations. The International Monetary Fund’s goal is to promote trade and exchange stability globally. The 187 members each pay a monetary amount to the International Monetary Fund based on their individual economic size, the current biggest contributor being the United States of America. Some major crises the IMF is involved in are aiding in rebuilding Haiti, the economic crash of Iceland and the financial problems in Greece.

The IFM was formed after the Second World War in 1944 as an agent of the United Nations, and came into formal existence in 1945 after the signing of the Articles of Agreement. The Articles of Agreement was as follows firstly The International Monetary Fund is established and shall operate in accordance with the provisions of this Agreement as originally adopted and subsequently amended. Secondly, to enable the Fund to conduct its operations and transactions, the Fund shall maintain a General Department and a Special Drawing Rights Department. Membership in the Fund shall give the right to participation in the Special Drawing Rights Department. And lastly, Ope...

... middle of paper ...

...ing with. The IMF is involved in at what seems all times. The world is a lot less stable than most people take into consideration, researching the IMF has made me realize that greatly. The International Monetary fund is proof of the world’s economic chaos and instability.

Works Cited

www.imf.org

Danielson, J. (2008). The First Global Financial Crisis of the 21st Century VoxEU.org Publication

Lee, S. (2002). New Political Economy: The international Monetary Fund Vol.7 No.2 Carfax Publishing

Lastra, R.M. (2000). The International Monetary Fund in Historical Perspective. Journal of International Economic Law. 507-523

Hashemzadeh, N. & Vehorn, C.L. (2009). The International Monetary Fund: Part of the Problem or Part of the Solution

Americanizing Asia?

Donald K. Emmerson

Foreign Affairs

Vol. 77, No. 3 (May - Jun., 1998), pp. 46-56

Show More
Related

  • Apush Chapter 25 Summary

    671 Words  | 2 Pages

    The July 1944 United Nations Financial and Monetary Conference, known as the Bretton Woods Conference, who created the International Monetary Fund (IMF) and the forerunner of the World Bank, the International Bank for Reconstruction and Development (IBRD). The “Bretton Woods system” was bolstered in 1947 with the addition of the General Agreements on Tariffs and Trade (GATT), forerunner of the World Trade

    Read More

  • The Gunpowder Empire Dbq

    1638 Words  | 4 Pages

    ...uptcy which forced the establishment of the Ottoman Public Debt Administration in 1881. This administration would later become the framework of the International Monetary Fund still existing today.

    Read More

  • Benefits and Costs of NAFTA

    3065 Words  | 7 Pages

    These international economic institutions should possess substantial transparency considering their policies directly affect the public. Instead, the IMF and similar institutions have no accountability to the public of which it is supposed to serve. Through lack of transparency, countries with major influence in the IMF such as the U.S. can indirectly impose its own investment agenda upon the country in crisis. If actions of the IMF were directed through a democratic process, more logical and productive policies would develop. If the IMF promotes transparency through the policies it imposes on developing countries, it should set an example through its own governance.

    Read More

  • Federal Reserve Bank

    1246 Words  | 3 Pages

    Broz, L, J, 1997, the International Origins of the Federal Reserve System, Cornell University Press, Ithaca, New York

    Read More

  • The Gold Standard in the International Economic System

    1261 Words  | 3 Pages

    Eichengreen, Barry. Globalizing Capital: A History of the International Monetary System. Princeton, NJ: Princeton University Press, 1996.

    Read More

  • Argumentative Essay On Foreign Aid

    3247 Words  | 7 Pages

    United Nations, ‘Monterrey Consensus of the International Conferenceon Financing for Development’ (United Nations Department of Public Information 2003) 7

    Read More

  • The Bretton Woods System

    1773 Words  | 4 Pages

    The theme of this essay outlines two things. One, the key elements of Bretton woods system and second, the characterisation of Bretton woods system by Ruggie as ‘embedded liberalism’, and how far he succeeds in it. The Bretton woods system is widely referred to the international monetary regime, which prevailed from the end of the World War 2 until the early 1970s. After the end of the World War 2, the need of international monetary framework to boost trade and economic; growth and stability, was important. Taking its name from the site of the 1944 conference, attended by all forty-four allied nations; the Bretton Woods system consisted of four key elements. First, to make a system in which each member nation has to fix or peg his currency exchange rate against the gold or U.S. dollar, as the key currency. Secondly, the free exchange of currencies between countries at the established and fixed exchange rate; plus or minus a one-percent margin. Thirdly, to create an institutional forum, so-called International Monetary Fund (IMF), for the international co-operation on money matters: to set up, stabilize, and watch over exchange rates. Fourth, to remove all the existing exchange controls limiting (protectionism) policies by the members, on the use of its currency for international trade. In practice the first scheme, as well as its later development and final demise, were directly dependent on the preferences and policies of its most powerful member, the United States. According to John Gerard Ruggie, 1982, this Bretton woods system of monetary co-operation represented the type of liberalism which characterise “domestic social economic stability along with a liberal trading order.” He referred this system as ‘embed...

    Read More

  • The IMF’s Role in Financial Crisis

    2219 Words  | 5 Pages

    The International Monetary Fund (IMF) is an international organization was set up in 1945 after World War II. The whole world had experienced severely destruction during the period World War One and World War Two, each state need the restorative processes and a good platform to recover its inherent ability and make their citizens get rid of poverty, hence economy problem it was the first problem that states should be concerned.

    Read More

  • What Is The Role Of The International Monetary Fund (IMF?

    1780 Words  | 4 Pages

    The International Monetary Fund (IMF) was established in 1946, along with the World Bank. The IMF was developed to promote all monetary cooperation and remedy economic problems incurred during the post - war reconstruction period (Baylis; 2008: 245). The IMF was therefore considered as the “rule keeper” and an important component in public international management. In the pursuit to stabilise the exchange rate system, the IMF reserves the authority to change exchange rates. Another vital role is control over the balance of payments deficit of states and governing the policies which affect states monetary systems (Spero; 1990: 33). However, since the 1980 's, the IMF 's role has settled into the position of an institution providing assistance, based on financial situations, to developing countries. In order for countries to receive any assistance, the

    Read More

  • The Impacts of the IMF and the World Bank

    933 Words  | 2 Pages

    the effect that the work of the IMF and the World Bank have had on the

    Read More

  • The International Monetary Fund and the World Bank

    1008 Words  | 3 Pages

    The IMF was created at the end of WWII in order to create a framework for global economic cooperation without creating a second Great Depression. Since its creation it has evolved to tackle a variety of economic issues. The goal of the IMF is to help the governments of member countries “take advantage of the opportunities- and manage the challenges- posed by globalization and economic development more generally.” It tracks global economic trends and performance, alerts member countries of potential problems, provides of forum to discuss policy, and helps governments in times of economic hardship. It provides policy advice and financing to member countries suffering from economic adversity. Additionally, it aims to create...

    Read More

  • The International Monetary Fund (IMF)

    2037 Words  | 5 Pages

    In the year of 1327, Kind Edward III of England defaulted on his Italian debts. This caused the banks of Bardi and Peruzzi in Florence to collapse. Who would know that over 650 years later, the world would still have these types of problems? After World War II, the need for an organization like the IMF was finally realized. After the war, politicians and economists began to work on blue prints for a postwar world. They envisioned a liberal international economic order, based on stable world currencies and revived world trade. The International Monetary Fund (IMF) finally came into existence on December 27, 1945. On this date, twenty-nine countries signed its charter when meeting at Bretton Woods, New Hampshire. On March 1, 1947 the IMF came into financial operations.

    Read More

  • Essay On Global Governance

    944 Words  | 2 Pages

    Global governance institutions, from the International Monetary Fund to the World Trade Organization, are little loved. They are often perceived as bastions of sclerotic mediocrity at best and outright corruption at worst. In the wake of the 2008 financial crash, Daniel W. Drezner, like so many others, observed the smoking ruins of the global economy and wondered the extent to which global governance institutions have affected the post-recession, international system.

    Read More

  • The Importance Of International Organizations

    1224 Words  | 3 Pages

    In 2015, President Barack Obama addressed the United Nations General Assembly and talked about the significance the United Nations has had since its creation in 1945, claiming: “This institution [U.N.] was founded because men and women who came before us had the foresight to know that our nations are more secure when we uphold basic laws and basic norms, and pursue a path of cooperation over conflict. And strong nations, above all, have a responsibility to uphold this international order.” President Obama argues that the U.N. is the glue which holds the international system together and promotes mutually beneficial outcomes for the world. The fact that an international organization (IO) such as the U.N. has endured for over 70 years is some

    Read More

  • The Global Economic Crisis

    664 Words  | 2 Pages

    Ferguson et al. International financial stability. Geneva: International Center for Monetary and Banking Studies, 2007. Print.

    Read More

More about Role of the International Monetary Fund

Open Document