🌍 ✅CASE STUDY: The IMF Flashcards
What is the IMF?
The International Monetary Fund
What does the IMF do?
An important source of finacia; and technical assitance to developing contries, and its main aim is to reduce poverty
How many countries are part of the IMF?
189
WHat is the IMF’s primary purpose?
To ensure stability of the international monetary system
What is the International Monetary System??
The system of exchange rates and international payments that enables countries to transact with one another
What did the 2012 update to the mandate include?
All macroeconomic and financial issues that bear on global stability
How is the IMF different from the World BAnk?
The IMF exists primarily to stablalise exhange rates while the World Bank’s gaosl is to reduce poverty
Who works for the IMF?
Around 2300 staff who are largely economists and financial experts
Does the IMF have affiliates or subsidaries?
No
What is the current value of the IMF’s resources?
$215 bn
Where do the IMF’s resources come from?
Quota subscriptions, and member fees oaid by member countries
How do the member countries contribute to the IMF?
An amount of money proportionate to its economic size and strength
How do memebr countries gain access to the IMF’s resources?
They can apply to use part of the money in times of financial need
How can the IMF help with a country’s debt?
The IMF can fill gap needed if a country has a payment deficit
WHat is the IMF’s most important function?
The ability to provide loans to member nations in need of a bailout
What can conditions attached to IMF loans state?
Economic policies which the borrowing gov must comply to
What has the IMF been criticised fro?
Being too slow or too eager to assist failing national policies and acting as a tool for free-market countries only
How have some nations expolited the IMF?
Italy and Greeexe have been accused of having unsustainable budgets because they believed that the IMF would come to their rescue
What is the parent organisation of the IMF?
The Un
Who does the board of governors consit of?
One representative from each country, usually the minister of finace
