• Provide a forum for cooperation on international monetary problems
• Facilitate the growth of international trade，thus promoting job creation，economic growth and poverty reduction
• Loans to help countries overcome economic difficulties
• Confessional loan to fight poverty in developing countries
• Technical assistance and training to help countries improve the management of their economies
---the system collapse, the members have been free to choose any form of exchange arrangement
3)Debt and painful reforms(1982-1989)
---the oil shocks of the 1970s
The 5 activities
• Policy advice to governments and central banks based on analysis of economic trends and cross-country experience
• Research, statistics, forecasts, and analysis based on tracking of global， regional，and individual economies and markets
The aims
• The major discipline is the requirement that exchange rates be fixed to the dollar
• The IMF’s main goal is to ensure the stability of the international monetary and financial system
Several ways of an adapting
• Enhancing International Monetary Fund lending facilities
• Strengthening the monitoring of global，regional，and country economies
The sufficient resources can help to overcome crisis. It has acted to help emerging markets caugHale Waihona Puke t up in the crisis
----loans for Hungary and Ukraine
----agreement in principle with Pakistan
transparency
The tools
• Three main tools:
1) economic surveillance----monitor global, regional, and national economic development; seek to assess the impact of the economic policies of individual countries on other economies
Reinforcing international cooperation
• Strauss-Kahn noted G-20’s endorsement of strengthening the IMF’s mandate in the areas of macroeconomic surveillance， lending to member countries in need，and providing assistance to build up capacity in emerging market and developing countries
• Helping resolve global economic imbalance
• Analyzing capital market development: • Assessing financial sector
vulnerabilities • Working to cut poverty • Improving IMF governance • Greater accountability and
Introduction
• A latest news：world leaders launch action plan to combat financial crisis on November 15,2008
• The aims is at resolving the global financial crisis and supporting the IMF’s capacity to contribute to these efforts
• Promote exchange rate stability and an open system of international payment
• Lend countries foreign exchange when needed，on temporary basis and under adequate safeguards，to help them address balance of payment problems
2) technical assistance and training
----aim to help member countries strengthen their capacity to design and implement effective policies
----four areas:
a. monetary and financial policies
b. fiscal policy and management
c. statistics
d. ask for technical assistance in work section
3)lending
----it can be tapped to facilitate recovery
• Managing Director Strauss-Kahn said: 1)The emphasis on fiscal stimulus is essential to
restore global growth 2)The declaration recognizes that some countries
December 1945 ---its membership began to expand in
the late 1950s and during the 1960s
2)The end of the Bretton Woods System(1972-1981)
---by early 1960s, dollar’s fixed value, under the Bretton Woods system of fixed exchange rates
• Its role in reform of financial markets is based on its responsibility for surveillance of the global financial system
Ensuring sufficient resources
----a loan for Iceland
The history (5 period)
1)Cooperation and reconstruction(1994-1917) 2)The end of the Bretton Woods
System(1972-1981) 3)Debt and painful reforms(1982-1989) 4)The end of communism(1989-2004) 5)Continued glolalization(2005-present)
---its staff expanded by near 30 percent
5)Continued glolalization(2005-present)
---the sharp rise in private international capital flows
---globalization affects countries labor, trade, and tax policies
---during 1970s, expansionary fiscal policies and overvalued exchange rates
---crisis broke out in Mexico in 1982
4)The end of communism(1989-2004)
---the fall of Berlin wall in 1989 and the dissolution of the Soviet Union in1991 enabled it to be a universal institution
• The founders aimed to build a framework for economic cooperation that would avoid a repetition of the disastrous economic policies