• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The International Monetary Fund.

Extracts from this document...

Introduction

The International Monetary Fund The International Monetary Fund (IMF) is a cooperative institution that many countries have voluntarily joined because they see advantage of consulting with one another in this forum to maintain a stable system of buying and selling their currencies so that payments in foreign money can take place between countries smoothly and without delay. The IMF was consequence from lengthy discussions of separate American, British, Canadian, and French proposals drafted during World War II. I'm going to discuss about origins, purposes, operations, financial assistance, and services of the IMF. The need for the IMF became apparent when the world faced the Great Depression that damaged the world economy during 1930s. The Depression was devastating to all forms of economic life. Banks failed by the thousands, leaving bewildered depositors penniless, agricultural prices fell below the cost of production, land values plummeted, abandoned farms cargoes that never materialized and millions of people were searching for jobs that didn't exist. A lack of confidence in paper money caused a demand for gold what national treasuries could supply. ...read more.

Middle

A member country undertakes to keep other members informed about its arrangements for determining the value of its money in relation to the money of other countries, to refrain from restricting the exchange of its money for foreign money. And also, they pursue economic policies that will increase in an orderly and constructive way its own national wealth and that of the whole membership. Members obligate themselves to follow this code of conduct. The IMF has no means of coercing them to live up to these obligations, although it can and does exert moral pressure to encourage them to conform to the rules and regulations they have freely agreed to observe. If a country persistently ignores its obligations to the IMF, the rest of the membership working through the IMF may declare the offending member ineligible to borrow money or, as a last resort, can ask the member to resign from the institution. Over the years the membership has assigned to the IMF a variety of duties appropriate to the changing needs of the times and the IMF has adapted flexibly within its mandate in carrying out these duties. ...read more.

Conclusion

As well as supervising the international monetary system and providing financial support to member countries, the IMF assists its membership by making technical assistance available to member countries in certain specialized areas of its competence by running an educational institute in Washington and offering training courses abroad; and by issuing a wide variety of publications relating to all aspects of international monetary matters and the IMF operations. They sometimes lack experience in highly technical areas of public finance and central banking, or wish to have a second opinion, many countries turn to the IMF for assistance in solving problems in these areas or in providing an expert to work with government financial agencies until sufficient domestic expertise is developed. The collapse of the international gold standard, the inter-war rise of trade policies, and the self-interest of bankers and politicians gave birth to the IMF in Bretton Woods. The IMF lends to member countries with balance-of-payments problems. The IMF operates many financing facilities, each with its own lending policies. The IMF also monitors the economic policies and performance of member countries in an effort to promote world economic growth. The IMF provides technical assistance to tits members through consultation, education, and research reports. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. The Balance of Payments.

    Demand for imported goods and services rises strongly during a boom and if exports cannot match the level of imports the trade figures will become negative. Conversely in times of low economic growth the domestic economy is likely to flourish and the number of imports will fall, either reducing trade deficit or resulting in surplus.

  2. Balance of Payments Policies

    If negative there is an overall outflow of foreign exchange. * The balance of invisible trade measures the net flow of funds resulting from the trade of services. This balance of invisible trade will include all of the following inflows or outflows of funds: o flows resulting from financial services e.g.

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    Malloch Brown argues that, in the context of extreme poverty in weak or failed states across the developing world, it is time for a paradigm shift on globalisation. An orthodox package of further liberalisation and greater public spending on health, education and safety nets needs to be replaced by a

  2. Emergency Economic Recovery Program From the United Nations International Report, Vol. I, no. A1

    living in rural areas, were obliged to further deplete their scarce soil, agroforestry and livestock resources. Levels of indebtedness have grown rapidly. Meanwhile, the basic public and private physical infrastructure remains partially or totally inoperative. MARNDR requires a substantial restructuring if it is to efficiently fulfill its normative and supervisory functions nationwide.

  1. INTERNATIONAL MONETARY FUND

    Both of these developments lessened the need for SDRs. Today, the SDR has only limited use as a reserve asset, and its main function is to serve as theunit of account of the IMF and some other international organizations. The SDR is neither a currency, nor a claim on the IMF.

  2. What were the major changes in the international economy after 1914? Why did the ...

    International trade was further disrupted by attacks on merchant ships and restrictions imposed by certain countries. The war also led to major changes in the labour market. With over 8.5 million European military dead and 5 million civilians' dead there was a great shortage of labour.

  1. The IMF. The stated purposes of the IMF were to create international monetary cooperation, ...

    The IMF makes its financial resources available to member countries through a variety of financial windows. Except for the Enhanced Structural Adjustment Facility (ESAF) drawings, which are loans of other members' currencies, members benefit themselves of the IMF's financial resources by drawing on other members' currencies, or SDRs, with an equivalent amount of their own currencies.

  2. Explain how money came to be what it was in Singapore at the beginning ...

    This resulted in the bizarre situation where the legal tender was not uniform throughout the Straits Settlements, creating confusion. The rupee, as legal tender, was incompetent in carrying out its functions. It was used as neither a medium of exchange nor a store of value.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work