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This paper describes how the The International Monetary Fund (IMF) was set up, its objectives and the policies it adopts. The writer looks at some criticisms that have been levelled at the IMF, explaining that two of the key issues, can be solved to the satisfaction of both sides. The paper concludes with some recommendations for reforming the IMF.
From the Paper:''The IMF has repeatedly come under fire, however, for its policies. The IMF promotes a strong free trade agenda, and this has been seen by some as promoting a cyclical macroeconomic environment that exacerbates economic slowdowns (Weisbrot et al, 2009). The institution faced similar accusations ten years ago in the wake of the Asian and Russian financial crises. Its policies, critics argue, promote a riskier version of global capitalism than most emerging markets can withstand. Austerity measures punish these countries, hampering growth opportunities and unfettered trade results in too many down cycles that lead emerging economies into crisis in the first place. Some of the structural problems that have been identified are a lack of transparency, lack of accountability and an outdated mandate (Johnson, 1997).
''The criticisms of the IMF, therefore, are manifold and come from both left and right-wing perspectives. Two of the key issues, however, can likely be solved to the satisfaction of both sides. The IMF currently lacks transparency and accountability. The mandate under which the IMF was set up did not include strong feedback loops to the economies that finance the IMF nor to governmental bodies such as the United Nations. Whereas domestic lending institutions are subject to a high level of regulation, including laws regarding predatory lending, the IMF is not subject to this type of oversight.''
Sample of Sources Used:
- Weisbrot, M., Ray, R., Johnston, J., Cordero, J. & Montecino, J. (2009). IMF-supported macroeconomic policies and the world recession: A look at forty-one borrowing countries. Center for Economic and Policy Research. Retrieved March 17, 2010 from http://www.cepr.net/documents/publications/imf-2009-10.pdf
- Johnson, B. (1997). The International Monetary Fund: Outdated, ineffective and unnecessary. The Heritage Foundation. Retrieved March 17, 2010 from http://www.heritage.org/Research/Reports/1997/05/BG1113-The-International-Monetary-Fund
- IMF.com, various pages. Retrieved March 17, 2010 from http://www.imf.org/external/about/overview.htm
Cite this Term Paper:
About the International Monetary Fund (2012, November 11) Retrieved February 21, 2020, from https://www.academon.com/term-paper/about-the-international-monetary-fund-152017/
"About the International Monetary Fund" 11 November 2012. Web. 21 February. 2020. <https://www.academon.com/term-paper/about-the-international-monetary-fund-152017/>