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Essays on International Monetary Fund - 1300 Words
Since the end of World War II, the International Monetary Fund (IMF) is a part of shaping the global economy. It is working to promote the 18 (countries, global monetary cooperation, safe financial stability, facilitating international trade, promoting high employment and sustainable economic development and reducing poverty worldwide) in the difficulties of the economy Provides policy advice and financing to the members and with developing countries, in order to achieve macroeconomic stability and reduce poverty, I The to works for.
During the end of World War II cooperation and reconstruction phase, the IMF was tasked to oversee the international monetary system in order to ensure exchange rate stability and encourage members to eliminate the exchange restrictions impeding trade. To be. When in 1971, during the oil shocks of 1973-74 and 1979, along with the system of fixed exchange rates fixed, the IMF stepped in to help countries cope with the consequences.
This helps in coordinating the global response to the international debt crisis due to oil shocks. It played a central role in assisting the countries of the former Soviet block transition for market-driven economies with central planning.
Even during the recent economic crisis, the IMF has been on the front lines of lending to help countries promote the global economy. The founders of the Bretton Woods system assumed that in the beginning of the nineteenth and early twentieth century private capital flows would not resume the main role again, and the IMF had traditionally given to the members facing current account difficulties.
However, the fragility of the advanced financial markets was exposed to the latest global crisis and the IMF got mess with the requests of stand-by arrangements and other forms of financial and policy support.
The international community recognized that IMF's financial resources were as important as ever and there was a possibility of thin spreading before the end of the crisis. With broad support from creditor countries, the fund's borrowing capacity reached about $ 750 billion. In order to effectively utilize these funds, the IMF left behind its borrowing policies.
It created a flexible credit line for countries with a track record of strong economic fundamental principles and successful policy implementation. In other reforms designed to help low-income countries, the IMF has enabled the immovable amount to be immersed immediately based on the needs of the borrowing countries and did not strictly enforce the quota in the past.
Based on the analysis of the IMF economic trends and cross-country experiences, it supports its member countries by providing policy advice to governments and central banks; Research, statistics, forecast and analysis based on the tracking of global, regional, and individual economies and markets; Loans to help countries deal with economic difficulties; Concessional debt to help fight poverty in developing countries; Technical assistance and training to help countries improve their management of economies.
Since the establishment of IMF, the world has changed dramatically, leading to widespread prosperity and millions of people out of poverty, especially in Asia. In many ways the main objective of the IMF is to provide financial stability to the global stability as it was when the organization was established. More specifically, the IMF continues to provide a platform for international collaboration on monetary problems; Facilitating the development of international business, thus promoting job creation, economic development and poverty reduction; Promote an open system of exchange rate stability and international payments; And when necessary, lend foreign currency to the countries on a temporary basis and under adequate safeguards, so that they can help in addressing the balance of payment problems.
The way of operating the IMF has also changed in the last few years. To meet the changing needs of its expanded membership in the globalized world economy, it has changed rapidly since the beginning of the 1990's. Recently, it has launched an ambitious reform agenda aimed at ensuring that the IMF continues to offer economic analysis and multilateral consultation at the core of its mission to ensure sustainability of the global monetary system.
Unrest in the advanced economy credit markets in 2007-08 has shown that domestic and international financial stability can not be approved even in the world's richest countries. Food and fuel prices rise, which are particularly difficult to hit import-dependent poor and middle income countries, is another aspect of globalized economy. The IMF has responded by raising its borrowing facilities by creating a new short-term liquidity facility and a new poverty reduction and development trust. It has taken several steps to improve economic and financial monitoring and to strengthen the monitoring of global, regional and country's economies.
To help solve the global economic imbalance, its World Economic Outlook, the IMF, has provided financial ministers and central bank governors with a common framework for the global economy. IMF now has the ability to ask multilateral consultation to discuss specific issues facing global economy, with a group of countries in an innovative way to facilitate collective action among global players.
The IMF is devoting more resources to the analysis of their relationships with global financial markets and comprehensive economic policy. Twice a year, it publishes Global Financial Stability Report, which provides up-to-date analysis of global financial markets. The IMF also provides training on the country's officers how to manage their financial systems, monetary and exchange systems, and capital markets.
The IMF is currently facilitating the formulation of voluntary guidelines for Sovereign Money Fund and works closely with the financial sustainability board for international financial sustainability. The IMF and the World Bank jointly run the Financial Sector Assessment Program, which aims to warn the countries of risks in vulnerabilities and their financial sectors.
The IMF helps in resolving the crisis, and works with its member countries to promote development and reduce poverty. Mandate monitoring, technical support and training, and its three main tools for borrowing. These works have been reduced on the basis of the research and statistics of the IMF. On a regular basis, the IMF conducts bilateral surveillance and evaluation in the depth of each member country's economic situation.
It discusses the policies of the officers of the country, which is likely to be the most sustainable and prosperous economy. The main focus of the discussions is whether there is a risk to the domestic and external stability of the economy, which will debate for adjustment in economic or financial policies.
The IMF provides technical support and training to assist member countries. The main areas for providing technical support and training are: monetary and financial policies; Fiscal policy and management; Improve compilation, management, dissemination, and statistical data; And economic and financial law.
If member countries are facing difficulties to balance their payments, then the IMF is also a fund that can be taped for convenience of recovery. IMF cooperates with national authority in formulating policy programs supported by funding. Continuous Financial Assistance is an effective implementation of this program. The IMF also provides low-income countries with poverty reduction and development facility (PRGF) and loans on concessional interest rates through the Exogenous View Facility (ESF).
In recent years, the IMF has implemented both monitoring and technical support for the development of good practice standards and code in the field of responsibility and strengthening the financial sectors. Apart from the World Bank, Regional Development Bank, World Trade Organization (WTO), United Nations agencies and other international bodies, IMF also interact with views tank, civil society and media on daily basis.
With its near-global membership, the IMF is exclusively earmarked to help member governments to take advantage of opportunities and face globalization and economic development and face challenges. The IMF tracks global economic trends and performance when it sees problems on the horizon, policy negotiations for the forum, and alerts its member countries to the financial difficulties to deal with the financial difficulties passed. It also provides policy advice and financing to members in financial difficulties and also works with developing countries.