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THE INTERNATIONAL MONETARY FUND

TodayÆs economies are linked on a global level. For example, consumers in the United States purchase computers manufactured in Japan and receive service assistance from call centers based in India. Countries with less developed economies seek foreign investment in order to help boost their economic performance, but foreign investors can be put off by unstable economic conditions, such as high levels of inflation. Countries may borrow from commercial banksùwhich are also globalùbut then may have problems repaying or even servicing the loans if the economies do not improve significantly. Following World War II, a number of international institutions were created that were designed to foster international trade, international financing of that trade, and resolve international financial disputes. These include the General Agreement on Tariffs and Tradeùnow the World Trade Organizationùwhich focuses on trade issues, and financial institutions such as the World Bank and International Monetary Fund. This research focuses on these financial institutions in general and their role in todayÆs international economy, and on the role and criticism of the International Monetary Fund in particular.

The World Bank and International Monetary Fund (IMF) were both created at the Bretton Woods Conference in 1945. This was the same conference at which the current banking system was established and which put in place the structure that led to the eventual removal of the United States and other major countries from the gold standard over the course of the twentieth century. The IMF and World Bank were created ostensibly to help eliminate poverty in developing countries, and to provide the necessary resourcesùfinancial and technicalùrequired for developing nations to achieve economic success. At the time, the 45 nations participating in the conference sought to maintain exchange stability and facilitate international trade. International t...

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THE INTERNATIONAL MONETARY FUND. (1969, December 31). In LotsofEssays.com. Retrieved 02:19, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1712255.html