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The International Monetary Fund.

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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.

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