IMF speech essays

IMF speech essays Before going on to the question whether IMF is a solution or is it just making the situations worse, a brief introduction is necessary. The IMF is an international organization of 184 member countries. And what is it trying to achieve? According to the official IMF web site it was established to: Promote international monetary cooperation, Exchange stability, and orderly exchange arrangements, Encourage economic growth and high levels of employment, And to provide temporary financial assistance to countries to help ease balance of payments adjustment. Before people from different countries can buy or sell anything to each other, first they have to be able to change their money from their currency to the other countrys currency. FOREIGN EXCHANGE. Each currency has a value in terms of the other currencies. - Without reliable supply of foreign exchange in each country, and without relatively stable exchange rate, the world trade would drop drastically. So, IMF was founded 50 years ago to allow currency to be exchanged freely and easily between member countries. IMF tries to help countries to always have enough foreign exchange to continue to do business with other countries. When a country imports more than it exports, it has a trade deficit (deficiency) This causes foreign exchange shortages. Meaning: business and government cant pay the bills they owe to other countries. This hurts both the country with the trade deficit and other countries that buy from it. But how does IMF actually help these countries The IMF has unprecedented power over these countries and it is often referred as the GATEKEEPER because it determines whether to open or shut the gate between a borrowing government and its creditors. Unless the IMF gives its seal of approval, signifying that are a governments policies are adequate (how much is adequa...