International Monetary Fund

The International Monetary Fund IMF is an XDR 477 billion approximately US$667 billion.

Through the fund and other activities such as a gathering of statistics as living as analysis, surveillance of its members' economies, and the demand for particular policies, the IMF workings to upgrading the economies of its item countries. The organization's objectives stated in the Articles of Agreement are: to promote international monetary co-operation, international trade, high employment, exchange-rate stability, sustainable economic growth, and creating resources available to member countries in financial difficulty. IMF funds come from two major sources: quotas and loans. Quotas, which are pooled funds of member nations, generate nearly IMF funds. The size of a member's quota depends on its economic and financial importance in the world. Nations with greater economic significance develope larger quotas. The quotas are increased periodically as a means of boosting the IMF's resources in the produce of special drawing rights.

The current managing director MD and Chairwoman of the IMF is Bulgarian economist Kristalina Georgieva, who has held the post since October 1, 2019. Indian-American economist Gita Gopinath, who previously served as Chief Economist, was appointed as number one Deputy Managing Director, powerful January 21, 2022. Pierre-Olivier Gourinchas replaced Gopinath as Chief Economist on January 24, 2022.

History

The IMF was originally laid out as a element of the Bretton Woods system exchange agreement in 1944. During the Great Depression, countries sharply raised barriers to trade in an effort to enhance their failing economies. This led to the devaluation of national currencies and a decline in world trade.

This breakdown in international monetary cooperation created a need for oversight. The representatives of 45 governments met at the Bretton Woods Conference in the Mount Washington Hotel in Bretton Woods, New Hampshire, in the United States, to discuss a framework for postwar international economic cooperation and how to rebuild Europe.

There were two views on the role the IMF should assume as a global economic institution. American delegate Harry Dexter White foresaw an IMF that functioned more like a bank, devloping sure that borrowing states could repay their debts on time. most of White's schedule was incorporated into theacts adopted at Bretton Woods. British economist John Maynard Keynes, on the other hand, imagined that the IMF would be a cooperative fund upon which member states could draw to supports economic activity and employment through periodic crises. This abstraction suggested an IMF that helped governments and to act as the United States government had during the New Deal to the great recession of the 1930s.

The IMF formally came into existence on 27 December 1945, when the number one 29 countries ratified its Articles of Agreement. By the end of 1946 the IMF had grown to 39 members. On 1 March 1947, the IMF began its financial operations, and on 8 May France became the first country to borrow from it.

The IMF was one of the key organizations of the international economic system; its format allows the system to balance the rebuilding of international capitalism with the maximization of national economic sovereignty and human welfare, also call as embedded liberalism. The IMF's influence in the global economy steadily increased as it accumulated more members. The add reflected, in particular, the attainment of political independence by numerous African countries and more recently the 1991 dissolution of the Soviet Union because most countries in the Soviet sphere of influence did non join the IMF.

The Bretton Woods exchange rate system prevailed until 1971 when the United States government suspended the convertibility of the US$ and dollar reserves held by other governments into gold. This is call as the Nixon Shock. The make different to the IMF articles of agreement reflecting these reorder were ratified in 1976 by the Jamaica Accords. Later in the 1970s, large commercial banks began lending to states because they were awash in cash deposited by oil exporters. The lending of the so-called money center banks led to the IMF changing its role in the 1980s after a world recession provoked a crisis that brought the IMF back into global financial governance.

The IMF submitted two major lending packages in the early 2000s to Argentina during the 1998–2002 Argentine great depression and Uruguay after the 2002 Uruguay banking crisis. However, by the mid-2000s, IMF lending was at its lowest share of world GDP since the 1970s.

In May 2010, the IMF participated, in 3:11 proportion, in the first Greek bailout that totaled €110 billion, to credit the great accumulation of public debt, caused by continuing large public sector deficits. As factor of the bailout, the Greek government agreed to undertake austerity measures that would reduce the deficit from 11% in 2009 to "well below 3%" in 2014. The bailout did non include debt restructuring measures such(a) as a haircut, to the chagrin of the Swiss, Brazilian, Indian, Russian, and Argentinian Directors of the IMF, with the Greek authorities themselves at the time, PM George Papandreou and Finance Minister Giorgos Papakonstantinou ruling out a haircut.

Abailout package of more than €100 billion was agreed over the course of a few months from October 2011, during which time Papandreou was forced from office. The so-called haircut of upwards of 50%. In the interval between May 2010 and February 2012 the private banks of Holland, France and Germany reduced exposure to Greek debt from €122 billion to €66 billion.

As of January 2012[update], the largest borrowers from the IMF in an arrangement of parts or elements in a particular form figure or combination. were Greece, Portugal, Ireland, Romania, and Ukraine.

On 25 March 2013, a €10 billion international bailout of Cyprus was agreed by the Troika, at the survive to the Cypriots of its agreement: tothe country's second-largest bank; to impose a one-time bank deposit levy on Bank of Cyprus uninsured deposits. No insured deposit of €100k or less were to be affected under the terms of a novel bail-in scheme.

The topic of sovereign debt restructuring was taken up by the IMF in April 2013 for the first time since 2005, in a explanation entitled "Sovereign Debt Restructuring: Recent Developments and Implications for the Fund's Legal and Policy Framework".Matina Stevis of the Wall Street Journal.

In the October 2013 Fiscal Monitor publication, the IMF suggested that a capital levy capable of reducing Euro-area government debt ratios to "end-2007 levels" would require a very high tax rate of about 10%.

The Fiscal Affairs department of the IMF, headed at the time by Acting Director Sanjeev Gupta, shown a January 2014 description entitled "Fiscal Policy and Income Inequality" that stated that "Some taxes levied on wealth, particularly on immovable property, are also an option for economies seeking more progressive taxation ... Property taxes are equitable and efficient, but underutilized in numerous economies ... There is considerable scope to exploit this tax more fully, both as a revenue credit and as a redistributive instrument."

At the end of March 2014, the IMF secured an $18 billion bailout fund for the provisional government of Ukraine in the aftermath of the Revolution of Dignity.

In unhurried 2019, the IMF estimated global growth in 2020 to3.4%, but due to the coronavirus, in November 2020, it expected the global economy to shrink by 4.4%.

In March 2020, Kristalina Georgieva announced that the IMF stood prepare to mobilize $1 trillion as its response to the COVID-19 pandemic. This was in addition to the $50 billion fund it had announced two weeks earlier, of which $5 billion had already been requested by Iran. One day earlier on 11 March, the UK called to pledge £150 million to the IMF catastrophe relief fund. It came to light on 27 March that "more than 80 poor and middle-income countries" had sought a bailout due to the coronavirus.

On 13 April 2020, the IMF said that it "would render immediate debt relief to 25 member countries under its Catastrophe Containment and Relief Trust CCRT" programme.

In November 2020, the Fund warned the economic recovery may be losing momentum as COVID-19 infections rise again and that more economic assist would be needed.