International Monetary Fund (IMF)

Popular Terms
UN specialized agency established in 1944 under Bretton Woods system to help prevent unstable exchange rates and competitive devaluations of pre-Second World War Western economies. It has since evolved into an organization of 184 countries focused on preventing crises in international monetary system via (1) surveillance through monitoring of national economies and economic policies, (2) medium-term loans to tide over balance-of-payment problems, and (3) technical assistance in formulating and administering monetary, exchange rate, and taxation policies, central bank operations, etc. Governed by a board of governors drawn from each member country, its day to day decisions are taken by a 24-member board who have voting-power in proportion to their respective country's economic strength (and not on the basis of one-country, one-vote practice).
The US (with about 18 percent of the voting-power), UK, France, Germany, and Japan are the most prominent members, followed by China, Russia, and Saudi Arabia. The other 16 members are elected from groups of countries called constituencies. IMF operates more like a credit union than an investment bank because its capital (currently about $300 billion) is contributed by its members based on a quota proportional to the member's economic strength. Members can borrow against this contribution, but lending is conditional on the borrower's pledge to follow certain hard choices such exchange rate devaluation, cuts in social spending, control on wages, and removal of price controls. Except in case of the poorest nations, loans are advanced on market interest rates (currently about 3 percent) and, if the borrowing exceeds the member's quota, more onerous conditions (called conditionalities) are imposed. Unlike the World Bank, IMF does not provide project-specific loans but only temporary lending (up to 10 years) for rebuilding of foreign exchange reserves, stabilization of the currency, and payments for imports.

Use 'International Monetary Fund (IMF)' in a Sentence

The International Monetary Fund was a really prestigious place and I wanted to study it and figure out exactly how it worked.
17 people found this helpful
You must make sure that you always do things about board so that the international monetary fund doesn't start looking in to you.
16 people found this helpful
The United Nations created a specialized agency called the International Monetary Fund to stabilize the world's currencies and maintains a monetary pool from which member nations can draw in order to correct a deficit in their balance of payment.
15 people found this helpful

Email Print Embed

<cite id="yvPRVNP"><span id="yvPRVNP"></span></cite>
<cite id="yvPRVNP"><span id="yvPRVNP"></span></cite>
<cite id="yvPRVNP"></cite>
<ins id="yvPRVNP"></ins><cite id="yvPRVNP"><span id="yvPRVNP"></span></cite><ins id="yvPRVNP"></ins>
<cite id="yvPRVNP"></cite><ins id="yvPRVNP"></ins>
<var id="yvPRVNP"><span id="yvPRVNP"><menuitem id="yvPRVNP"></menuitem></span></var><var id="yvPRVNP"><video id="yvPRVNP"><thead id="yvPRVNP"></thead></video></var>
<cite id="yvPRVNP"></cite>
<var id="yvPRVNP"></var>
<var id="yvPRVNP"><span id="yvPRVNP"><menuitem id="yvPRVNP"></menuitem></span></var>
<var id="yvPRVNP"><span id="yvPRVNP"></span></var>
<cite id="yvPRVNP"></cite>
<cite id="yvPRVNP"><video id="yvPRVNP"><var id="yvPRVNP"></var></video></cite><cite id="yvPRVNP"></cite><var id="yvPRVNP"><span id="yvPRVNP"></span></var>
<var id="yvPRVNP"></var>
<cite id="yvPRVNP"></cite>
<ins id="yvPRVNP"><span id="yvPRVNP"></span></ins>
<ins id="yvPRVNP"></ins>
  • 417382779 2018-02-20
  • 872964778 2018-02-20
  • 986857777 2018-02-20
  • 897952776 2018-02-20
  • 8817775 2018-02-20
  • 641753774 2018-02-20
  • 63537773 2018-02-19
  • 800463772 2018-02-19
  • 483929771 2018-02-19
  • 757618770 2018-02-19
  • 898576769 2018-02-19
  • 784484768 2018-02-18
  • 935121767 2018-02-18
  • 755185766 2018-02-18
  • 681379765 2018-02-18
  • 690204764 2018-02-18
  • 323435763 2018-02-17
  • 688202762 2018-02-17
  • 79305761 2018-02-17
  • 850445760 2018-02-17