What is the imf and what role does it play what are

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What is the IMF, and what role does it play? What are two criticisms of the IMF and two of itsopportunities for the future? What is the World Bank and what role does it play? What are twocriticisms of the World Bank and two of its opportunities for the future?
nations with very different economic standings, they must contribute their attention to all nations andtheir needs even those that economically strive over others. The IMF created a way to help thosecountries that were in the economic slums and bring them out of debt, without creating even more.Criticism of IMF:Conditions of Loans: On giving loans to countries, the IMF makes the loan conditional on theimplementation of certain economic policies. These policies tend to involve Reducing governmentborrowing /higher taxes and lower spending. Along with this come higher interest rates to stabilize thecurrency. Sometimes the conditions may also allow for failing companies to go bankrupt, structuraladjustments, privatization, or even reducing corruption in the government. The problem is that thesepolicies of structural adjustment and macro-economic intervention can make difficult economicsituations worse.Free market criticisms of IMF: As well as being criticized for implementing ‘free market reforms’ Otherscriticize the IMF for being too interventionist. Believers in free markets argue that it is better to letcapital markets operate without attempts at intervention. They argue attempts to influence exchangerates only make things worse – it is better to allow currencies to reach their market level.Opportunities of IMF:1. Contribute to establish stable macroeconomicBy providing loans, IMF helps developing countries overcome economic difficulties => decrease ininflation rate, changes in measured unemployment/employment. Moreover, the IMF provides policyadvice and financing to members in economic difficulties and also works with developing nations to helpthem achieve macroeconomic stability and reduce poverty.

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Term
Winter
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Tags
Business, Exchange Rate,

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