The International Monetary System

Paper Summary:

The following paper discusses the balance of payments in the International Monetary System and examines how countries raise needed capital for development and infrastructure projects. In addition the future and factors of global investment, both public and private are discussed.

From the Paper:

\"The IMF was given the responsibility to promote the growth of world trade by setting rules for the maintenance of fixed exchange rates and by making loans to countries that were experiencing balance of payments difficulties. (Balance of payments is a bookkeeping system for recording all payments that have a direct bearing on the movement of funds between a nation, both private and government sectors, and foreign countries.) As part of its role of monitoring the compliance of member countries with the rules, the IMF also took on the job of collecting and standardizing international economic data, managing the world monetary system and facilitate international payments. Under the system, exchange rates were supposed to change only when a country was experiencing large persistent deficits or surpluses in its balance of payments.\"

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