The International Monetary Fund and Current Accounts Essay

1635 WordsSep 25, 20127 Pages
Running head: The International Monetary Fund The International Monetary Fund and Current Accounts Bura Marshall Grand Canyon University: ECN-450 Professor Momoh Dudu August 19, 2012 The International Monetary Fund and Current Accounts After the Second World War many countries were in economic disarray and needed to find a way to stabilize their economy so that they could be a part of the new global economy. But in order for this to happen the countries needed to first come together to make sure that the changes that would be made would not only be beneficial to their economy, but would also be good for the world economy. The organization that was developed to help facilitate the stabilization of the world economy and advise countries on developing their economies was the International Monetary Fund. The International Monetary Fund or the Fund, as it is most often referred to, has 187 member countries and came about on December 27, 1945 as the world was emerging from war. In the beginning there were only 29 countries who signed the Funds Articles of Agreement at a conference held in Bretton Woods, New Hampshire. The Articles of Agreement is the international treaty that gives the Fund its legal authority, and it is the first of these articles that outline the purpose of the Fund. (External Relations Department, 2011, ¶ 1) The Fund is mainly responsible for giving advice to its member countries and insuring that these countries make the necessary adjustments to their economic polices so that they can prevent or in some cases emerge from an economic crisis that could as a consequence spill over into the global economy. Although lending money is one of the purposes of the Fund’s mandate, it is as of late, more concerned with keeping up with data on the economic activity in the global economy. One of the data points the IMF

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