International Monetary Fund

International Monetary Fund (often abbreviated as IMF) is an international organization that aims to promote global economic growth and financial stability, to encourage international trade, and to reduce poverty around the world. The IMF was created in 1944, at the Bretton Woods Conference and came into formal existence in 1945 with 29 member countries. Its goals were to assist in the reconstruction of the world's international payment system post-World War II. Countries contribute funds to a pool through a quota system from which countries with payment imbalances can borrow. As of 2020, the fund had XDR 477 billion (about US$667 billion).

History

The IMF was established at the Bretton Woods Conference in 1944, and it came into formal existence in December 1945 when the first 29 countries signed its Articles of Agreement. The statutory purposes of the IMF today are the same as when they were formulated in 1943.

Functions

The IMF's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund's mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.

Criticism

The IMF has been criticized for being "out of touch" with local economic conditions, cultures, and environments in the countries they are requiring policy reform. The economic advice the IMF gives might not always take into consideration the difference between what spending means on paper and how it is lived in reality.

See also

• World Bank
• Bretton Woods system
• Bretton Woods Conference
• Economic policy
• Globalization

External links

• Official website

International Monetary Fund Resources
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