International Monetary Fund (IMF)
Definition
The International Monetary Fund is an international organization that aims to promote global economic growth and financial stability, to encourage international trade, and to reduce poverty around the world.
Analogy
Think of the IMF as a financial doctor. Just like a doctor diagnoses your health problems and prescribes treatment, the IMF helps countries diagnose their economic issues and suggests solutions. It also provides loans (like a bank) to help countries overcome economic difficulties.
Related terms
Bretton Woods System: This was an agreement in 1944 that set up new rules for commercial and financial relations among the world's major industrial states. It established both the IMF and World Bank.
World Bank: An international organization dedicated to providing financing, advice, and research to developing nations for development programs (e.g., bridges, roads) that are expected to improve their economies.
Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale. It's often tied with increased interdependence between nations' economies.
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