International Monetary Fund VS The World Bank - 广.ppt

International Monetary Fund VSThe World Bank What is the real difference? Purposes of the IMF and The World Bank The International Monetary Fund (IMF) maintains international monetary cooperation among its members (p163) The World Bank aids in the development and reconstruction of it members(p171) IMF Briefing Exchange rate stability, balance of payments disequilibrium, and growth of international trade Currently 182 member countries By sharing economic policies the system of buying and selling currencies would be stable World Bank Briefing Made up of 5 different organizations International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Center for the Settlement of Investment Disputes (ICSID) History behind the IMF and World Bank After the Great Depression in the 1930s there was a need for an organization to create a system for exchange rate stability Uncertainty of the value of paper money (no longer used the gold standard) Countries began cheating other countries in trade Countries’ economies affected by WWII need for reconstruction in well-developed nations need for development in the lesser developed nations Bretton Woods Conference 1940s proposals for monetary system by Harry Dexter White (U.S.) and John Keynes (UK) establish the value of each currency eliminate restrictions and certain practices on trade assistance for post-war reconstruction Bretton Woods Conference, New Hampshire, July 1944 with delegates of 44 nations final negotiations of the IMF and the World Bank took place Purposes of the IMF Articles of Agreement of the IMF i) promote international monetary cooperation ii) expansion and balanced growth of international trade iii) promote exchange rate stability iv) help establish multilateral system of payments and eliminate foreign ex