Question

International Monetary Fund

In 250 words or more Describe its organization.(No Plagiarism please)

Answer 1

International Monetary Fund is the central institution that embodies the international monetary system, promotes balanced growth, ensures free trade among its members, provides stable exchange rate and helps its members from financial risk. It encourages countries to have sustainable economic policies for better and risk free world growth.

Primarily reason for its existence was to support the countries from finacial instability under the fixed exchange rates among its 29 founding members after the World War II. One of the founding father of the IMF was then distinguished economist J.M. Keynes. At that time, most of the economies were operating under the fixed exchange regime. Therefore, there was very likely for economies to suffer from balance of payment crisis. Thus, the IMF created and required each member country to deposit its currency as a fund. Therefore, IMF could help the country that is suffering from Balance of payment crisis. Since, world is no longer under the fixed exchange regime. So now, it provides the consultancy to its members and helps them according to their need.

There are several committee within the IMF same as the United Nations. Financial committee headed by board of governors meets twice in a year. During, which they evaluate the contemporary economics and financial problem and come out with its possible suggestions.

IMF also provides conditional loan to the country those are required, but it needs collateral and seeks macroeconomics corrective measures in the economy. The IMF itself suggests these measures. IMF promotes trade within its members and favor economic globalization with lower tariffs and quotas. So given, its working style and aim it is an important financial institution that is helping to keep up peaceful and prosperous growth.