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Unformatted text preview: INTERNATIONAL MONETARY FUND by Didem Kurt The Origins of IMF The IMF was conceived in July 1944 at an international conference held at Bretton Woods, New Hampshire, U.S.A. Delegates from 44 governments agreed on a framework for economic cooperation partly designed to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s. The Origins of IMF (cont'd) The IMF came into existence in December 1945. The IMF Articles of Agreement were heavily influenced by interwar experience of financial and price level instability and unemployment. The Origins of IMF (cont'd) The intention was to provide a mixture of discipline and flexibility. Countries that joined the IMF between 1945 and 1971 agreed to tie their exchange rates to USD ($35 an ounce). (Bretton Woods System) IMF was setup to oversee the system and facilitate its functioning by lending to countries with temporary BOP problems. Breakdown of Bretton Woods System Increases in U.S monetary growth to finance fiscal expenditures after the mid 1960's...
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