The International Monetary Fund in Washington, D.C. (IMF) was designed at Bretton Woods, New Hampshire in 1944, where economists recognized the need for a steady world economy based on the cooperation of governments in trade issues. The IMF provides its members with a permanent forum for consultation, advice on key economic policies, technical assistance and training and temporary financial assistance.
Accordingly, the IMF has three major functions: to administer a Code of Conduct among member nations regarding exchange rates and payments; to provide financial resources for countries to observe the code and correct imbalances in payments; and to provide a forum for countries to consult and collaborate with each other on international monetary issues. Functioning as a kind of nest egg for all governments at once, IMF funds come with stipulations: they are available only for temporary payment problems and are expected to be repaid as soon as possible, usually within three to five years.
From: A Global Affair: An Inside Look at the United Nations, published by Jones and Janello, copyright 1995, all rights reserved.
