From this week I would be begining with a series of posts trying to demystify a few commonly used economic terms and jargons.I would be posting these posts once a week so as to not to burden you with too many jargons.The links to these posts would be sent to you along with the mailers.
To begin with : the Bretton Woods twins
Who are the Bretton Woods twins?
The International Monetary Fund and The World Bank
Why are they called the Bretton Woods twins ?
Because they were formed after the second world war as a result of a conference held at Bretton Woods in the US
Why were they formed?
They were formed to assist in the reconstruction of war-ravaged countries. Leaders felt that financial stability was best achieved when countries worked in an environment of interdependence.
What was the IMF suppose to do?
IMF was supposed to oversee and monitor the economic performance of member countries and warn them of any developing economic crisis. There are 147 members in IMF.
If any crisis does develop and a country approaches IMF for help, the organisation chalks out a recovery plan, which includes imposition of conditions for keeping the economies on a particular path.
What role is the World Bank play suppose to perform?
It works to provide soft loans for the development of social and economic infrastructure to countries. It also has a set of conditions that it often follows and broadly follows the IMF prescription.
Do let me know if you find these posts difficult to understand coz the objective of these posts is to make economics very simple and easy to understand to an average student.
ma'am what is imf.
ReplyDeleteIMF : International Monetary Fund
ReplyDeleteits good and easy to understand. Ma'am please post such articles evry week.
ReplyDeleteplease post more articles on topics which are related to the present economic situation
ReplyDelete