Imf As An International Financial Institution Essay

The 1997-1998 Indonesian Economic Crises. IMF Interventions - Lessons to learn. Introduction. 1997 to1998 saw the East Asian nations of Thailand, Indonesia and South Korea engulfed in an economic and financial crises that nearly collapsed their economies. The IMF was at the center stage to help during these crises. How IMF’s assistance further deepened Indonesia’s economic crises, received heavy criticism from Political, economic and social analyst against IMF s programs and Policies in Developing nations worldwide. Brief History of The IMF as an International Financial Institution. The IMF (The International Monetary Fund) with the World Bank, were established in July 1944 at the Bretton Woods conference as International Financial Institutions. â€Å"to Prevent economic crises and to rebuild economies shattered by World war II† The Levin-Institute(n.d). The IMF as an IFIs, was â€Å"aimed at stabilizing global financial markets and national currencies by providing resources to establish secure monetary policy and exchange rate regimes.†The Levin-Institute(n.d) IMF Economic Program in Indonesian. Until 1997, Indonesia (as a member state to the IMF) had most of its foreign exchange reserves retained, no serious macroeconomic imbalances- its current account deficit(CAD) was half that of Thailand. It also had in place, most of its policy makers who for 30 Years oversaw the rapid growth of the economy. Grenville, S (May,2004. Pp4). According to Grenville, S (May,2004. Pp4)Show MoreRelatedThe Impact Of Global Financial Institutions Such As The World Bank And International Monetary Fund ( Imf )2179 Words   |  9 Pagesexplore and critically analyze the impact of the global financial institutions such as the World Bank and International Monetary Fund (IMF). There was a discussion on reasons for the establishment of the institutions. 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