How the International Monetary Fund (IMF) Works

Representations of the IMF Online
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Representations of the IMF Online
The International Monetary Fund (IMF) is an international organization that was founded in Washington, D.C. 1945. To date, the organization has 190 member countries. Each member nation donates funds (quotas) to the IMF to nurture financial stability, fight crises, and facilitate trade. As a result, IMF is considered a beneficial financial body whenever a country struggles financially. Due to its familiarity, numerous studies on how it performs have been performed. This paper analyzes three YouTube videos that discuss how IMF works.
The first video, “International Monetary Fund, 2017," analyzes various goals and functions of this financial body. Every member country joins IMF aiming to nurture financial stability, prevent crises, and facilitate trade. IMF achieves this by tracking the economic holes of its members by collecting and evaluating data (International Monetary Fund, 2017). One of the functions discussed in the video is that IMF advises its member nations on the best economic policies to adopt, which can aid the health of the global economy. To date, the organization is evolving to meet global economic obstacles. For instance, it is working hard to address the role of women in the workplace, climate change, and money laundering. Mitigating these challenges would guarantee economic well-being to its member states.
Video 2, “Explified, 2020," echoes why the IMF was established in the 20th century. One goal of its establishment was to reduce global poverty. It was also instituted to encourage international trade. Furthermore, IMF was created to foster countries' financial stability and economic growth. On the other hand, video 2 deeply analyzes the functions of this global organization (Explified, 2020). One IMF function is lending money (The Investopedia Team, 2021). It gives financial support to its member countries with a balance of payment instead of lending money to fund personal projects. This process is essential as it facilitates stronger currency and robust economic growth. Additio...