2: IMF Flashcards
Aim 1:
Promote international monetary cooperation
Aim 2:
Make resources available to members experiencing balance of payments difficulties.
Role 1:
IMF’s primary role is to ensure the stability of the international monetary system.
Power 1:
Provision of expert financial advice
Power 2:
Lending
Greece promised:
2010: Promised a total of 48.1 billion.
Greece recorded a deficit:
Equal to 7.2% of the country’s GDP in 2015
IMF speculates:
Reforms could boost GDP by 4% over 5 years and 10% in the long term
IMF managing director Lagarde:
Greece’s debt level “was sustainable and likely to be repaid in full and on time”
IMF limitation:
One-Size-Fits-All approach
Austerity measures have driven the unemployment rate:
To about 27.3% of the population. Predicted rate was 15%. Lead to widespread rioting in Athens.
IMF (2014):
Admitted that it has “misjudged the effect of austerity on a country”
Cuts to over :
20,00 public sector jobs
Greece requires a further bail out of :
$52 billion euro between October 2015 and end of 2018
IMF provided financial advice to:
2013- Warned Turkey that it remains vulnerable to a sudden slowdown or stop in capital inflows, and that a failure to address its imbalances could lead to ‘systematic distress’ that would slow the country’s growth.
