International Monetary Fund (IMF)
The international monetary fund is an international institute that controls and embodies the flow and regulation of monetary system around the world. The major objective of IMF is to ensure a balanced and profound expansion of the money around the world. Other important responsibilities of IMF are to reduce the restrictions associated with trade, stabilize the exchange rates of the money in different countries, minimize the trade imbalances throughout the world, avoiding the possibility of devaluation of currency of a particular country, and correcting the payment problems within various countries of the world. Another objective of IMF is to reduce and rectify the financial crises that may exist around the world due to recession or other economic problems. The headquarter of IMF is in Washington DC with its sub offices operating in different parts of the world
Importance of IMF
IMF just like World Bank is another very important and an influential monetary institution around the world. However it is also one of the most controversial legislative bodies in the world as a number of disputes may occur due to the decisions made by IMF and its monetary policies. However the objective of both the World Bank and IMF are completely different. For example the objective of IMF is to deal with microeconomics and introduce monetary policies however the objective of World Bank is to ensure long term economic development and poverty elimination policies around the globe. IMF works in accordance with World Bank, World Trade Organization and United Nations to pursue its objectives and aims around the globe.
However whether the policies of IMF are truly benefiting the international economy is a matter of a great debate. There are strict policies and conditions that relate to get loans from IMF especially for Third World Countries.