IMF AND INDIA RELATIONS
CHAPTER 1: INTRODUCTION TO IMF
1.1 Formation of IMF
During the Great Depression of the 1930s, countries attempted to shore up their failing economies by sharply raising barriers to foreign trade, devaluing their currencies to compete against each other for export markets, and curtailing their citizens ' freedom to hold foreign exchange. These attempts proved to be self-defeating. World trade declined sharply (see chart below), and employment and living standards plummeted in many countries.
This breakdown in international monetary cooperation led the IMF 's founders to plan an institution charged with overseeing the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to buy goods and services from each other. The new global entity would ensure exchange rate stability and encourage its member countries to eliminate exchange restrictions that hindered trade.
The Bretton Woods agreement
The IMF was conceived in July 1944, when representatives of 45 countries meeting in the town of Bretton Woods, New Hampshire, in the northeastern United States, agreed on a framework for international economic cooperation, to be established after the Second World War. They believed that such a framework was necessary to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression.
The IMF came into formal existence in December 1945, when its first 29 member countries signed its Articles of Agreement. It began operations on March 1, 1947. Later that year, France became the first country to borrow from the IMF.
The IMF 's membership began to expand in the late 1950s and during the 1960s as many African countries became independent and applied for membership. But the Cold War limited the Fund 's membership, with most countries in the Soviet sphere of influence not joining.
1.2 IMF:
The International Monetary Fund (IMF) is an international organization that was
1.1 Formation of IMF
During the Great Depression of the 1930s, countries attempted to shore up their failing economies by sharply raising barriers to foreign trade, devaluing their currencies to compete against each other for export markets, and curtailing their citizens ' freedom to hold foreign exchange. These attempts proved to be self-defeating. World trade declined sharply (see chart below), and employment and living standards plummeted in many countries.
This breakdown in international monetary cooperation led the IMF 's founders to plan an institution charged with overseeing the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to buy goods and services from each other. The new global entity would ensure exchange rate stability and encourage its member countries to eliminate exchange restrictions that hindered trade.
The Bretton Woods agreement
The IMF was conceived in July 1944, when representatives of 45 countries meeting in the town of Bretton Woods, New Hampshire, in the northeastern United States, agreed on a framework for international economic cooperation, to be established after the Second World War. They believed that such a framework was necessary to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression.
The IMF came into formal existence in December 1945, when its first 29 member countries signed its Articles of Agreement. It began operations on March 1, 1947. Later that year, France became the first country to borrow from the IMF.
The IMF 's membership began to expand in the late 1950s and during the 1960s as many African countries became independent and applied for membership. But the Cold War limited the Fund 's membership, with most countries in the Soviet sphere of influence not joining.
1.2 IMF:
The International Monetary Fund (IMF) is an international organization that was
Bibliography: http://www.yourarticlelibrary.com/money/india-also-got-the-following-benefits-of-becoming-the-imf-members/23520/ http://business.mapsofindia.com/finance-ministry/imf.html http://www.thehindubusinessline.in/2003/06/29/stories/2003062901470100.htm http://zeenews.india.com/business/news/economy/imf-projects-5-4-growth-for-india-in-2014-15_94832.html