The International Monetary Fund Case Study

Tyneisha Ahmad

Columbia Southern University

Unit VII Case Study

The International Monetary Fund (IMF) is an association of 188 nations, functioning to promote global financial collaboration, safe monetary constancy, smooth the progress of international deal, promote high service and sustainable financial growth, and reduce scarcity around the world. The IMF was born at the end of World War II, it was created to out of a need to prevent economic crisis like The Great Depression. The IMF is the largest public lender of funds. This organization is open and available to any country that happens to conduct foreign policy and accepts the organizations statuses.

The IMF is responsible for the creation and maintenance of the international monetary system; this is the system where international payments from other countries take place.  The IMF gets its money from quota subscriptions paid for by member states. The size of each quota that the state has to pay is determined by how much each government can pay according to the size of the economy. The United States of America as a whole is looked at as an economy, however not realizing that individual states play a huge part in that.

For example, the economy in Texas is better than the economy in Louisiana so therefore they can contribute a bigger quota. A country can borrow money from the IMF if it has an actual or potential balance of payments that is needed. The IMF resources are intended to provide cushion that eases the adjustment policies and reforms that a country must make to correct its balance of payments problem and help reforms that a country must make to correct its balance of payments problem and help restore conditions for strong economic growth (Investopedia, 2016).