Overview
The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world."[1] Formed in 1944, started on 27 December 1945,[9] at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes,[10] it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international monetary system. It now plays a central role in the management of balance of payments difficulties and international financial crises.[11] Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money. As of 2016, the fund had XDR 477 billion (about US$667 billion).[9]
Function
Upon the founding of the IMF, its three primary functions were: to oversee the fixed exchange rate arrangements between countries,[22] thus helping national governments manage their exchange rates and allowing these governments to prioritize economic growth,[23] and to provide short-term capital to aid the balance of payments.[22] This assistance was meant to prevent the spread of international economic crises. The IMF was also intended to help mend the pieces of the international economy after the Great Depression and World War II
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