We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

IMF Policy and Its Effects - Assignment Example

Comments (0) Cite this document
Summary
IMF policy and its effects Instructor Name December 18, 2011 IMF policy and its effect Economic recession and depression are two words which most of the world is quite familiar with. These are used to denote a particular state of economy when downsizing of investments in a country has begun and end up with high inflation rates…
Download full paper
GRAB THE BEST PAPER
IMF Policy and Its Effects
Read TextPreview

Extract of sample
IMF Policy and Its Effects

Download file to see previous pages... In his essay “What I Learned at the World Economic Crisis”, he described very thoroughly the problems of such countries and the role of international monetary fund IMF in creating and multiplying the downfall of a running economy. Stiglitz said that during his appointment as chief economist, he saw many economic crises in most parts of the world, which then took the form of a global crisis. He said that the IMF in not very serious on the issue of solving the problems of countries. Because it suggested wrong policies, many developing countries which were initially in a very good state, adapted those policies & in the end, declined off smoothly. Actually, IMF tries to implement the same tactics on each country without properly analyzing the background and ground facts. During the crises of Latin America in 1980s, IMF imposed controlled budget technique and tight policies if the countries agreed to provide them with an aid. This really proved to be good for them as they were not already involved with budget surpluses techniques so they survived from the crisis in a much better way. But the big issue is that IMF imposed all such techniques to those countries too like Thailand and Indonesia, who have a total different reality than US. This was a big mistake, not only from the IMF side but from the governments too, as they did not consider the fact that IMF was not fully aware of their economical status. They were already giving huge surpluses while avoiding the severe conditions of illiteracy and other factors that contributed a lot in economical development of a country. By implementing IMF policies, they nearly starved to death. The inflation rates and unemployment soared and people came upon the streets against their governments. Another major reason of this setback was that some Asian countries started liberalizing their capital markets, due to which they needed more revenue to compensate. So they implemented some short term financial programs which caused huge real estate disasters. In late 1990s, Thailand and Indonesia suffered major economic crises due to bad policies of IMF. Stiglitz suggested that the tight austerity measures, high interest rates and reductions in government’s expenditure cannot solve the problem of such countries; rather it would propel them more towards depression and result in more bankruptcies. If there would be internal policies of the country according to its own ground facts, then they would be more helpful. Privatization is not the solution; instead there must be market competition so that the best would tackle the system. There should be an institutional infrastructure from top to bottom, which would definitely be helpful in boosting the economy. If every country suffering from recession adapts these measures, it will definitely get out of it without much damage to the economy (Stiglitz. What I Learned at the World Economic Crisis. 2000). In the reply to all of above mentioned accusations made on IMF, Kenneth Rogoff, the Economic Counsellor and Director of the Research Department at IMF, came up with a comprehensive set of answers in his article “The IMF strikes back”. He said that there has been a debate on the competency of IMF staff that they are incapable and 3rd class students at their times, and also that IMF staff is careless and irresponsible that they don’ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“IMF Policy and Its Effects Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1440395-imf-policy-and-its-effects
(IMF Policy and Its Effects Assignment Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/macro-microeconomics/1440395-imf-policy-and-its-effects.
“IMF Policy and Its Effects Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1440395-imf-policy-and-its-effects.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Global financial crisis and its effects on Nokia Company
The impact of the global financial crisis is still considerable. It is causing an economic slowdown in developed and developing countries globally. Evidence shows that, the root cause of economic and financial turmoil is the selling of sub-prime mortgages by the United States mortgage market to huge numbers of consumers with inadequate incomes.
9 Pages(2250 words)Assignment
THEORY OF FINANCIAL INSTITUTIONS AND POLICY
These managers are hired by the owners who hold stocks of the company and are part of the board of directors. The real conflict arises when managers start pursuing their own private interests rather than devoting their energies towards the protection and promotion of board members interest (BITLER, MOSKOWITZ, and VISSING-JORGENSEN, 2005).
12 Pages(3000 words)Assignment
Altenative for Unemployment or Housing Policy
The country has been facing hurdles to eradicate the issue of unemployment due to recession that has occurred very recently. The concept of recession came into being due to the Great Depression that took place in the USA in the year 1929. To overcome the problem of Great Depression, the country took a substantial amount of time to get out of it.
6 Pages(1500 words)Assignment
Ethnic Segregation and Its Effects in America
Ethnic Segregation and Its Effects in America Name School Ethnic Segregation in America Ethnic segregation is a way of separating people according to their races. This applies to their housing, transportation, restaurant facilities and access to public places among many other areas of public interest.
2 Pages(500 words)Assignment
IMF
to IMF and World Bank macroeconomic programmes prescribed for developing countries whose economies are going through the throes of stagnation, decline, debt, and fiscal imbalances. Adherence to structural adjustment programmes (SAPs) have been used by the IMF (and the World
8 Pages(2000 words)Essay
Fiscal Policy and Its Implications in Belgium
The government uses this policy in affecting the economy. When a state experiences recession, the government might lower tax rates to fuel economic growth. If the people pay their taxes, they have the money to spend or invest and with increased consumer spending, an
2 Pages(500 words)Assignment
Field Report for Sierra leone
The economic development in Sierra Leone has always been hampered and hindered by the country’s overdependence on exploitation of minerals. Sequential regimes as well as the inhabitants as a whole have continuously believed that gold and
7 Pages(1750 words)Assignment
Discussion based on the east asia crisis
East Asia had experienced phenomenal growth before the crisis that refers to as the east Africa miracle. There was decreased in poverty, stable government that provided
1 Pages(250 words)Assignment
International environment policy
(II) Access to new markets where globalization can lead to free trade between countries. Access to new markets help companies in innovation. (III) Widening disparity in incomes where
1 Pages(250 words)Assignment
Health care facilities and Delivery systems/ Technology and its effects
Secondly the growth of technology in the healthcare sector is increasing the demand on the health care system from the Americas growing population. Further, the rise in technology is making the older nurses and health workers in the field to be faced out due
5 Pages(1250 words)Assignment
Let us find you another Assignment on topic IMF Policy and Its Effects for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us