Economic Role Of IMF

The International Monetary Fund (IMF) is a universal organization head featured in Washington, D.C., of "189 countries working to cultivate global monetary cooperation, guarantee financial stability, expedite international trade, advocates employment and sustainable economic growth, and diminish poverty around the world. Formed in 1944 at the Bretton Woods Conference, it came into existence in 1945 with 29 member countries and the goal was reconstructing the international payment system. Countries subsidize funds to a pool through a quota system from which countries experiencing balance of payments difficulties can get a loan of money. Through the fund, and other activities such as statistics-keeping and decomposing, supervision of its members'

The IMF's role was fundamentally altered by the floating exchange rates post-1971. It shifted to examining the economic policies of countries with IMF loan arrangements to determine if a shortage of capital was due to economic variations or economic policy. The IMF also researched what types of government policy would ensure economic recovery. The new challenge is to sponsor and implement policy that reduces the frequency of crises among the emerging market countries, in precise the middle-income countries that are vulnerable to massive capital outflows. Rather than maintaining a position of neglect of only exchange rates, their function became one of surveillance of the overall macroeconomic achievement of member countries. Their aspect became a lot more active because the IMF now manages economic policy rather than just exchange

The International Monetary and Financial Committee (IMFC) approved the guidelines for the dissemination standards and they were split into two tiers: The General Data Dissemination System (GDDS) and the Special Data Dissemination Standard (SDDS).
IMF conditionally is a set of policies or conditions that the IMF needs in exchange for financial resources. The IMF does require related from countries for loans but also requires the government looking assistance to correct its macroeconomic imbalances in the form of policy reform. If the terms are not met, the funds are withheld. Conditionally is perhaps the most bipolar aspect of IMF policies. The concept of the conditional was introduced in a 1952 Executive Board decision and later incorporated into the Articles of Agreement.
Conditional is correlate with economic theory as well as an enforcement mechanism for repayment. Deriving primarily from the work of Jacques Polka, the theoretical foundation of conditional was the "monetary passage to the balance of