Role Of The International Monetary Fund

2297 words - 9 pages

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, Operations and transactions authorized by this Agreement shall be conducted through the General Department, consisting in accordance with the provisions of this Agreement of the General Resources Account, the Special Disbursement Account, and the Investment Account; except that operations and transactions involving special drawing rights shall be conducted through the Special Drawing Rights Department.

The IMF began its operation in 1947 and issued its first loan to France later that year. The formation of the International Monetary Fund took place in Bretton Woods, New Hampshire by 45 represented governments. The IMF looked to create a framework of economic synergy to avoid repeating mistakes like the devaluation that caused the great depression in the 1930’s. The International Monetary Fund’s goal and purpose is to have international monetary cooperation, exchange stability, facilitate the growth of international trade, and make resources available to countries in need and to create multilateral payment systems. The main objective of the Bretton Woods system, where the International Monetary Fund was founded, was to secure peace and maintain it. The depression of the 1930’s left the memories of unemployment,...

Find Another Essay On Role of the International Monetary Fund

The goal of this paper is to discuss the origin and role of the International Monetary Fund

1367 words - 5 pages The goal of this paper is to discuss the origin and role of the International Monetary Fund. The International Monetary Fund is a specialized agency of the United Nations system that was set up by a treaty in 1945 in order to help improve the world economy. The IMF's headquarters is located in Washington, D.C.; 184 worldwide country representatives govern it. The IMF works for global wealth by promoting the balanced expansion of world trade

International Monetary Fund Essay

7307 words - 29 pages INTRODUCTIONFounded 53 years ago in the turbulent era of the 1940s to stabilise the world economy, the International Monetary Fund (IMF) has become outdated, ineffective, and unnecessary. Most of the economic conditions that led to the IMF's creation no longer exist; in addition, the Fund has failed to achieve most of its own newly defined roles, a preponderance of which merely duplicate the functions of other existing agencies and

International Monetary Fund

1942 words - 8 pages International Monetary Fund Intro: In July 1944, the United Nations Monetary and Financial Conference met in Bretton Woods, New Hampshire, to find a way to rebuild and stabilize the world economy that had been severely devastated by World War II. One result of the conference was the founding of the International Monetary Fund (IMF) through the signing of its Articles of Agreement by 29 countries. The stated purposes of the IMF

International Monetary Fund

1532 words - 6 pages (Hoogvelt 125). Further compounding the problems of the developing nation were the neoliberal pressure as exerted through the IMF for states to sell off at barging prices their state owned enterprises (Hoogvelt 126). Thus we see the developing state’s role being reduced to that of legitimizing debt devaluing public assets. Drawing off of Hoogvelt’s writings we can see some existing critiques of the IMF’s agenda of liberalization. He mentions

Financial Crises and the International Monetary Fund

3043 words - 13 pages the government to believe that it was “too big to fail” and intervention was necessary. The financial crisis was an international one, not confined to the US. The International Monetary Fund reported at the end of 2009 that there had been over $4.1 trillion in toxic assets, $2.7 trillion from the US alone. One of the consequences of American strength in the global economy were the adverse effects that impacted US trading partners and the rest


2521 words - 11 pages . However, it differs from the World Bank in that a European typically leads the IMF whereas the World Bank is typically American led. At its inception the IMF had two primary functions, which were to provide short-term capital to aid in balance of payments difficulties and to oversee the fixed exchange rate agreements between countries. (International Monetary Fund, 2013) However, the role of the IMF changed substantially when the US moved away from

To What Extent has the International Monetary Fund Impacted the Democratic Republic of Congo under Mobutu Sese Seko?

1356 words - 5 pages Part A: Plan of Investigation To What Extent has the International Monetary Fund Impacted the Democratic Republic of Congo under Mobutu Sese Seko? The International Monetary Fund (created in 1945) was conceived by the meeting of representatives of 45 countries in Bretton woods, New Hampshire, United States to support countries facing debt crisis. The aim of this internal assessment is to examine the effect the IMF has had on the Democratic

The World Bank and the International Monetary Fund, Interchangeable But Different

805 words - 4 pages The World Bank and the International Monetary Fund are two organizations that are used interchangeably, but are function very differently from one another. Both the World Bank and the International Monetary Fund were created during the post-World War II era to help stabilize the international economy. The IMF focuses mainly on international affairs and finance of the whole world, where the World Bank directs its attention toward developing

The Internationa Monetary Fund Controversy

1612 words - 6 pages The IMF’s Controversy The International Monetary Fund periodically develops programs to "rescue" countries from debt default. However, many developing countries argue that IMF policies often hurt the poorest of the poor, and sometimes to the advantage of rich countries and global corporations. From time to time the economic growth of developing countries finds itself on a decline due to poor government policies or outdated reforms that

The International Monetary System

740 words - 3 pages Industrial Revolution. This period was characterized because Britain was the hegemonic, the first country to industrialize. In the early nineteenth century Britain had already surpassed the gains elsewhere, production and efficiency. Bretton Woods Conference in 1944 and the creation of the World Bank (WB), the International Monetary Fund (IMF), and the World Trade Organization (WTO) had changed the world’s economic system. The establishment of these

The International Monetary Fund's Advantages and Shortcomings

2226 words - 9 pages The International Monetary Fund (IMF) is an organization of international that was started in 1944 at the Bretton Woods Conference and it officially was created by 29 members of countries on December 27, 1945. A fixed exchange rate system set up in Bretton Woods Agreement in which each country the IMF par value for the currency based on gold and the U.S. dollar. By reason of the dollar was fixed at $ 35 per ounce of gold, is also the same par

Similar Essays

The International Monetary Fund Essay

2495 words - 10 pages 1. Introduction 1.1 What is the International Monetary Fund (IMF)? “The International Monetary Fund is an organisation that provides short-term credit to 186 member nations. The International Monetary Fund works to maintain orderly payments arrangements between countries and to promote growth of the world economy without inflation. It supports free trade in goods and services. To stabilize its members’ economies, the IMF provides policy advice

The International Monetary Fund (Imf) Essay

2616 words - 11 pages The International Monetary Fund, is an international organization established in 1945 as part of the United Nation system. Its creation was conceived at Bretton woods, to “…regulate the rates at which currencies were exchanged among member countries; and it would help ensure international stability by making loans at times of crisis in member countries’ balance of payments.” Since its creation, the IMF have gain enormous power in

Triumphs And Tragedies Of The International Monetary Fund & World Bank

1946 words - 8 pages organization's services obsolete? A closer examination of the organization and its workings, its problems, and its opponents positions reveals the answers to these questions.The International Monetary Fund officially started operating on March 1, 1947. The philosophy behind the organization was mainly influenced by two men: Harry Dexter White and John Maynard Keynes. They were both heavily influenced by main economic and political events of the 1920

The International Monetary Fund And Balance Of Payments

2057 words - 9 pages /journals.asp Eiteman, D. K., Stonehill, A. I., & Moffett, M. H. (2010). Multinational Business Finance. (12th ed.). Boston, MA: Pearson Education, Inc. International Monetary Fund (IMF). (n.d.a). About the IMF. Retrieved March 9, 2014, from International Monetary Fund (IMF). (n.d.b). Balance of payments and international investment position statistics. Retrieved March 9, 2014, from