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

    As mentioned earlier, some countries, first in East Asia, then in Latin America and later in Eastern Europe, have opened their economies and, to a greater or lesser extent, taken advantage of globalisation. Others have not. This is not to deny the importance of international co-operation where national-level action is insufficient.

  2. The Balance of Payments.

    As a result the positive trend with non EU-countries noted in the second quarter of the year has not continued and as a result 2003 ended with a trade deficit of 3.3 billion. For the UK the persistent trade deficit has a number of causes both short and long term, however the root cause of deficit is cyclical.

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

    The labour markets after and during the war were far less flexible due to the growth in the power of the trade unions around the world. After the war most of the finances of the countries were devoted in reparations and payment of war damages.

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

    The Agricultural Sector A. Statement of the Problem The already weak productive base of the Haitian rural economy has suffered an increased rate of decapitalization during the crisis of the past three years. Small-scale farm households, which make up the vast majority of the 70 percent of the Haitian population

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

    Multiple Currencies as Legal Tender (1867 - 1900) Control of the Straits Settlement was transferred to the Colonial Office in 1867 and this anomaly was rectified by the Straits Settlements Legislative Council. The Legal Tender Act of 1867 authorized the Governor in Council to specify Mexican dollars and other silver dollars to be legal tender from time to time.

  2. Balance of Payments Policies

    If imports are greater than exports i.e. outflows of funds are greater than inflows of funds then there is a Balance of Payments deficit on current account. In the accounts, outflows of foreign currency are denoted with a minus sign.

  1. Why have international financial conferences at Seattle and elsewhere men with protest?

    Many of the companies concerned such as BP and IBM have delegates there as well so small countries feel very overpowered. When the Bank and the Fund lend money to debtor countries, the money comes with strings attached. These strings come in the form of policy prescriptions called "structural adjustment policies."

  2. 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.

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