Explore BrainMass
Share

IMF successes and failures

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What are examples of IMF successes and failure?

© BrainMass Inc. brainmass.com October 24, 2018, 10:20 pm ad1c9bdddf
https://brainmass.com/economics/european-union/imf-successes-and-failures-156082

Solution Preview

The IMF was established by the United Nations in 1944 to provide loans to distressed countries at a relatively low interest rate. Nations having balance-of-payments problems can borrow from the IMF for short time periods if they agree to follow IMF recommendations. Typically, these require that the debtor nation follow an austerity program that limits government spending, domestic consumption, and imports. The IMF advises governments on macroeconomic policies which affect its exchange rate and its budget, money and credit management. Generally the IMF requires that countries devalue their currencies and cut government spending. The stated goal of the IMF is economic stability.

Many criticize the IMF because it tends to support the status quo, often military dictatorships. These regimes, while friendly to the US and Europe, tend not to be overly-concerned with human rights. ...

Solution Summary

Whether IMF policies aid developing nations or prevent them from prospering.

$2.19
See Also This Related BrainMass Solution

International monetary fund

Task Type: Discussion Board Deliverable Length: 4-5 paragraphs
Points Possible: 75 Due Date: 9/15/2008 11:59:59 PM CT

Your cousin's latest interest is The International Monetary Fund, about which you are now chatting online.

The IMF was established by the United Nations in 1944 to provide loans to countries in financial distress at a relatively low interest rate. Nations having balance-of-payments problems can borrow from the IMF for short time periods and such loans include economic and financial stipulations on the debtor nation. Typically, such stipulations require that the debtor nation follow an austerity program that limits government spending, domestic consumption, and imports.

Your cousin wants to know, what do you think about the goal of the IMF's aid to distressed countries? What has been the controversy surrounding the IMF austerity programs? What are examples of the IMF successes and failures?

In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.

View Full Posting Details