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International Monetary Fund (IMF)

Definition

The IMF is an international organization created in 1945 to promote global economic stability and growth by providing financial assistance and advice to member countries.

Analogy

Think of IMF as a financial doctor for countries. When a country's economy is sick or struggling, it can go to the IMF for a check-up. The IMF then provides a diagnosis and treatment plan which often includes loans and policy advice.

Related terms

World Bank: An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Bretton Woods System: An international monetary system established in 1944 to promote monetary cooperation among nations. It set up rules for commercial & financial relations among major industrial states.

Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale, driven by trade and investment.