International Monetary Fund (IMF)

Definition

The International Monetary Fund is an international organization that aims to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. It provides financial assistance and advice to its member countries, often in times of economic crisis.

Related terms

Balance of Payments:

A record of all transactions made between entities in one country and the rest of the world over a defined period, including imports, exports, foreign investments, and loans.

Structural Adjustment Programs:

Economic policies for developing countries that are designed by the IMF and the World Bank to encourage economic growth and structural change to overcome problems in balance of payments.

Bretton Woods System: An arrangement established in 1944 that set up fixed exchange rates for major currencies to the U.S. dollar, which was convertible into gold; it also led to the creation of the IMF and the World Bank