Imf International Monetary And Financial Committee

5134 words - 21 pages

IntroductionAlthough, capitalism has only been around for approximately 100 years as an idea, its propagation around the globe has been relatively successful. However, the propagation has had its failures. For instance, the gold standard as a monetary system for world trade had its weaknesses. The gold standard first began to have problems during World War I (1914-1919) when countries tried to expand the money supply without the additional gold that they would need. When the IMF was established in 1944 by a United Nations conference held at Bretton Woods, New Hampshire, the Allied Powers of World War II also established a U.S. dollar-based international monetary system. Under the agreement ...view middle of the document...

Apart from those Governors that are represented on the International Monetary and Financial Committee, the Governors gather only on the occasion of the IMF-World Bank Annual Meetings to deal formally with IMF matters. During the rest of the year, they communicate the wishes of their governments for the IMF's day-to-day work through their representatives on the Executive Board.The International Monetary and Financial Committee consist of 24 Governors representing constituencies or groups of countries, corresponding to those of the Executive Board. It meets twice a year, on the occasion of the IMF-World Bank Annual and Spring Meetings, to advise the IMF on the functioning of the international monetary system.The Executive Board consists of 24 Executive Directors representing the IMF's 184 member countries. The Board, which is based at IMF headquarters in Washington, D.C., is responsible for conducting the day-to-day business of the IMF and meets at least three times a week in formal session. At present, eight Executive Directors represent individual countries: China, France, Germany, Japan, Russia, Saudi Arabia, the United Kingdom, and the United States. The 16 other Executive Directors each represent groupings of the remaining countries. The Executive Board rarely makes its decisions on the basis of formal voting, but relies instead on the formation of consensus among its members. Finally, the Managing Director is Head of IMF staff and Chairman of the Executive Board. Executive Board appoints the Director. The current managing director is Horst Kohler, a German national. ( IMF's three main activities:surveillance, financial assistance, and technical assistance.Surveillance is a policy dialogue with each of its members. Generally once a year, it evaluates members' exchange rate policies within the overall framework of their economic policies in what is known as an Article IV consultation. Surveillance is based on the conviction that strong and consistent domestic economic policies will lead to stable exchange rates and a growing and prosperous world economy. The IMF also carries out multilateral surveillance, the results of which are summarized in the World Economic Outlook annually, and in the Global Financial Stability Report quarterly. The importance of surveillance over members' economic and financial policies was further underscored by the Mexican crisis of late 1994 and the financial crises in Asia and other emerging market countries, when crises in these countries spilled over to other emerging economies. The IMF also has a mandate under its Articles of Agreement to exercise firm surveillance over the exchange rate policies of members in order to oversee the international monetary system and ensure its effective operation. Surveillance mandate initiates the IMF to hold consultations, normally every year, with each of its members. These consultations focus on the member's exchange rate, fiscal, and monetary policies; its balance...

Other Essays Like IMF- International Monetary And Financial Committee

Bank Crisis Essay

1279 words - 6 pages . The impacts are given below: ❖ For this crisis international investors were unwilling to lending in developing nations that slows down the economy of those countries. ❖ Reduced the price of oil which reached a low of about $11 per barrel towards the end of 1998 that causing a financial pinch in OPEC nations and other oil exporters. ❖ This reduction in oil revenue contributed to the 1998 Russian financial crisis, which in turn

Imf and World Bank Challenge Nation State

1439 words - 6 pages of the United States government on this matter. In a general way the United States is dependent on the IMF, and thus that organization will influence US economic policy. There are a few reasons why the International Monetary Fund makes it easier for the United States to do business globally, and I will look at one. Because of globalization, the US economy is tied up closely to the growth of the world economy. The IMF can lend to developing

Micro Finance

990 words - 4 pages , “The Impact of the Global Financial Crisis on Microfinance and Policy Implications,” Working Paper of International Monetary Fund (IMF) in July 2011. References “2009 MFI Benchmarks”, Microfinance Information Exchange (MIX) Adrian Gonzalez, July 2007, “Resilience of Microfinance Institutions to National Macroeconomic Events: An Econometric Analysis of MFI Asset Quality,” MIX Discussion Paper No. 1 Nicolas A. Krauss and Ingo Walter

Neo-Classical Model of Financial Market Globalization

986 words - 4 pages inequality increases. As a results, emerging markets did not experience what the neoclassical financial globalization model predicts. References Prasard, E. S. Rogoff, K. Wei, S. and Kose M. A 2003, ‘Effects of Fnancial Globalization on Developing Countries: Some Empirical Evidence’, Occasional paper, International Monetary Fund, Washington DC, p. IMF

Fnancial Stability Forum

516 words - 3 pages Ministers and Central Bank Governors in April 2008. it identifies key weaknesses underlying current financial turmoil, and recommends actions to improve market and institutional resilience. The FSF discussed work underway at the International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD) with regard to sovereign wealth funds (SWFs). The IMF is working closely with SWFs to identify a set of voluntary best

The Bretton Wood Agreement

3404 words - 14 pages operation through the newly established International Bank for Reconstruction and Development (IBRD, the World Bank) and the International Monetary Fund (IMF). What makes the Bretton Woods Agreement so interesting to us today is the fact that the whole plan for international monetary policy was based on nations agreeing to adhere to a global gold standard. Each country signing the agreement promised to maintain its currency at values within a

The Report of Hong Kong

4112 words - 17 pages (AUD) to Hong Kong Dollar (HKD) [pic] (The World’s Favorites Currency site, 2012) 12. Financial management issue The Hong Kong Monetary Authority (HKMA) is accountable for stabling and maintaining the monetary system, strengthen the position as an International Financial hub, and managing the exchange fund. HKMA is playing a significant role of financial management in

Imf and World Bank Responsible for Economic Genocde

1053 words - 5 pages programme. Key objectives have been met: public finances are on a sustainable path, the exchange rate has stabilized, and the financial sector has been restructured. Strong policy implementation has underpinned this success (IMF 2011) (4). However none of what the IMF claims can be seen in the economical structure. The exchange rate was not stable; Ice land went in a recession period, at the same time, the Fund forced Iceland to impose a high

Using Foreign Exchange Reserves for Development

1964 words - 8 pages Foreign Exchange Reserves • ‘Only' the foreign currency deposits and bonds held by central banks and monetary authorities. Literal Definition Generic Definition • Total of a country's gold holdings and convertible foreign currencies held in its banks, plus special drawing rights (SDR) and exchange reserve balances with the International Monetary Fund (IMF). Foreign Exchange Reserves Sovereign Bonds Foreign Currency Deposits

Brics Bank

921 words - 4 pages form a development bank and a pool of currency swaps at their sixth annual summit in Fortaleza, Brazil. The July 15-16 summit marked a new beginning in the global economic order because for the first time in post-War history there was a collective, institutionalised effort from major economies to challenge the hegemony of the West-focused World Bank and International Monetary Fund (IMF). The New Development Bank (NDB) of Brics, which will start

Bretton Woods Agreement

2449 words - 10 pages ). The agreement aimed to rebuild after WWII through a series of currency stabilisation programs and infrastructure loans to war torn nations. By 1946 the system was in full operation through the newly established International Bank for Reconstruction and Development (IBRD/World Bank) and the International Monetary Fund (IMF) 2 which were both established under the Bretton Woods Agreement (Wiggin, 2006, para. 3). There were several main features

Related Papers

International Monetary Fund Imf Essay

1645 words - 7 pages describes itself as "an organization of 184 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty". Development of issues towards IMF ==►In the 1930s, as economic activity in the major industrial countries diminished, countries began to adopt such practices, as to conserve diminishing reserves of gold and

The International Monetary Fund's Model Essay

1834 words - 8 pages Who are the IMF? The International Monetary Fund( IMF) is comprised of 188 member states for increasing global cooperation on monetary matters, ensure financial stability, facilitate international trade, support sustainable economic growth and high employment and working to reduce poverty all over the world. Although, the IMF is one of the specialized agencies of United Nations, they have their own charter, management structure and financial

Imf Rescue Programs In The Financial Crisis In Eurozone

645 words - 3 pages nations (Fullbrook, 2007). A report in 2003, by George Mason University’s School of Public Policy says, “The roots of Greece's fiscal calamity lie in prolonged deficit spending, economic mismanagement, government misreporting, and tax evasion." In order to avert the collapse of the European Union and the world economy, the EU together with the International Monetary Fund (IMF) had to find a means of bailing out the ailing states Greece, Italy and

How Latin America Could Get Out Of Imf's Control

3460 words - 14 pages ) projects and – except for the specific experience of FLAR only recently have encompassed the pooling of reserves to deal with payment constraints. In a changing international environment with globalised financial markets, those institutions, monetary and financial cooperation and regional integration, could make Latin America less dependent on IMF. Now, IMF is visiting Latin America asking to give some lessons to advanced countries. I don’t know how