World monetary system and the role of IMF Term Paper

World monetary system and the role of IMF - Term Paper Example Also, there are resentments about the IMF’s interferences in the internal economic policies of the countries in matters related to opening up of industries to globalization, privatization of public sector companies, fiscal discipline, abolition of subsidies for narrowing down the budget deficits and reform processes. This paper seeks to review the role of IMF in world monetary system and the relevance of their policies under current developments in international economy. Since world monetary system is linked to world economy, the analysis covers its impact on world economy and the adequacy of the system to deal with the emerging challenges in relation to its objectives. Introduction â€Å"The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.† (IMF) In the backdrop of increasing globalization drive in various countries, technological developments, advent of internet and mobile telephony, the international trade has undergone significant changes over years.... The adequacy of the international monetary system in dealing with these ground level changes has to be revisited with a view to realign scope of functioning of the IMF in tune with developments in world economy. Review of literature IMF extends credit facilities to the countries with a view to ensure stability and balanced economic growth among the world countries. The gold-standard system adopted at Bretton Woods Conference in 1914 with the aim of encouraging economic discipline through sound economic policies has failed. Devaluation of currencies after World War - I by many countries to make their exports competitive in the world markets and trade restrictions to protect their domestic economies have severely affected global economic growth. In order to prevent collapse of global economic system and provide monetary order, proposal for setting up of International Monetary Fund and a World Bank for Reconstruction and Development were mooted in the Bretton Woods in 1944. The US with huge gold reserves and with infrastructure not damaged by war had to play a crucial role in the IMF with the primary aim of providing credit to the countries with deficit in Balance of payments. However, the credit facilities were subject to conditions with regard to revamping of the economic policies of the countries to ensure stability and avoid any crisis in the future. The system of fixed exchange rates at par value of the currencies fixed in terms of dollar or gold worked well for some time, but defending the par values became increasingly difficult for countries. Currently, floating exchange rates governed by demand and supply are predominantly in force. IMF has played a pivotal role in

Juvenile Justice Essay Example | Topics and Well Written Essays - 500 words - 9

Juvenile Justice - Essay Example Income inequality within America has haunted the masses because it provides them more problems than solving any issues for them in the first place. It aims to study the very basics related with the distribution of income towards the rich lot rather than bringing any suffice to the people who form up the majority within America today. The income inequality measures do not stand as a hindrance for the elites who form up as a very minute fraction of the American populace yet they end up paying less in taxes and eat much of the bulk of market share by usurping heavy salaries, perks and privileges. It is for this matter that the issue of juvenile delinquency has come up because the masses have not been able to feed their children, and hence the children have started to commit crimes that are unbecoming of their tender age and stature. An important matter that remains to be understood here is the fact that income inequality makes the very significant of matters to go down the drain and hence the element of juvenile delinquency is one subject which has suffered on more counts than anything else. The young ones are unaware of the extent of their acts which they are committing at the end of the day. It is for this reason that they are made scapegoats by the society and its differing economic standards, which are outright abysmal to state the least (Author Unknown, 2010). This is the reason why many young ones find themselves in prisons more often than not and thus find little help from the society as far as resurrecting their life domains are concerned. As the lady in the video suggested, America no matter being the richest country in the world is unable to provide for the basics of having a proper and decent life. The impact gap within America is severe to say the least. This is because since the rich are getting richer with each passing day, the brunt is falling upon the shoulders of the not so rich which are indeed the masses. They are unable to provide for their