Flashcards in ✅Case Study - The IMF Deck (20)
What is the IMF?
The International Monetary Fund
What does the IMF do?
An important source of financial and technical assistance to developing countries, and its main aim is to reduce poverty
How many countries are part of the IMF?
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 sector issues that bear on global stability
How is the IMF different from the World Bank?
The IMF exists primarily to stabilise exchange rates while the World Bank's goal is to reduce poverty/
Who works for them?
Around 2300 staff who are largely economists and financial experts
Does the IMF have affiliates or subsidiaries?
What is the current value of the IMF's resources?
Where do the IMF's resources come from?
Quota subscriptions, and member fees paid by the member countries
How do the member countries contribute to the IMF?
An amount of money proportionate to its economic size and strength.
How do the member 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 the gap needed if a country has payment deficit
What is the IMF's most important function?
The ability to provide loans to member nations in need of bailout
What can the conditions attached to IMF loans state?
Economic policies which the borrowing government must comply to
What has the IMF been criticised for?
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 exploited the IMF?
Italy and Greece 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?