History Of (IMF) International Monetary Fund and what is IMF? A Small history of the IMF.

We are going to get an idea about IMF or international monetary fund we always hear this IMF this word of IMF whenever there is an issue in the economy of our country but we really don't know what is the purpose and the history of IMF so let's dig in and see what it is let's see why it IMF was made from 1929 to 1939 it was the period of the great depression now what this great depression is so guys the economy of Europe fell down or we can say that there was a decrease of almost 15 GDP of the economy of Europe so that is that in Europe more than millions of people got jobless and even it was a great shock in the whole world even at the time at that time countries depended on each other and if countries depend on each other so if one country or one nation collapse we can see the effect of it in every associated a nation so it's more like a domino effect that if one thing gets hit all the other things also got affected so whole the world was in chaos because of this great depression so almost 44 countries decided to make an organization which can help to eliminate such monetary loss in future so this inter-monetary fund which is an international organization and world bank was made in 1944 now up till now, almost 190 countries are the member of this IMF there are some functions of IMF as well so the first one is it fosters global monetary cooperation it's the promotion of this organization so that many nations can help to cooperate in this funding the second thing is financial stability IMF help member countries so to stable their collapsing economy by funding them and helping them financially so the third thing is to facilitate international trade it also helps in the trading among many countries fourth thing is it promotes high employment by

promoting high employment means that needy countries, it helps financially by starting certain projects to stabilize their economy and by their this way they promote high employment on that project that will help in even reducing poverty in that country so the purpose of this IMF organization is to stop or eliminate the risk of collapsing of the economy of any nation and mostly the member nations and how they help these countries so it's it is by providing them loan now it is not that IMF is alone in this field but it has some competitors as well so the first one is a new development bank and the other is Asian infrastructure investment bank so both of these banks are also working very hard

in the mainstream, so the question here is where IMF get this much money that it can give loan to many nations so so there are many resources of IMF they

have a quota contribution that all the member countries contribute some amount by becoming a member of it and it by keeping the economy of their countries in view the second thing is gold holding IMF holds IMF is the organization that has the largest gold reserves in the world it holds around 90.5 million ounces of gold so we can say that IMF's total gold holdings are valued at 4.4 billion dollars now we talk about the interest of countries IMF not always give loan to every country but where there is an interest of

The USA or the united states of America but the question here is that this organization was working for all the nations so why just keep the interest of America at the forefront

so the answer is that IMF is like it works IMF works on the investment that every country or many countries invest their money in IMF and the profit that would be gained by the IMF because IMF give loan with heavy interest rates so the profit will be distributed among those countries according to their investment in America is the country

which has almost invested 17 percent in this IMF so it gets the highest profit and uses this IMF according to its interest The same is the case with the competitors

bank as well these banks keep the interest of China at the forefront  if we talk about the advantages that are that there are many advantages of IMF but let's discuss some of them

the first one is it provides loans to member nations now if there is a country whose economy is about to get collapse so there is the advantage of IMF that they can get help from or they can get monetary help from the IMF second thing is that it fills the deficits gap now what is deficit gap deficit is when you need a certain amount but the sum of money falls short of the required amount so when this gap gets increased the help from IMF tries to fill the scan the third advantage of IMF is that it provides technical support and assistance now I must not just provide help for health or financial health but it also guide or assist countries how to maintain this progress and to eliminate the rate of the loan for the future but there are some disadvantages of IMF as well so let's see what are this first one is it is too much or too little interested now interference if IMF has some personal interest in any country, they get involved in that country too much but it gets frustrating because they have eye on each and everything of that country but if there is no interest of 

 IMF in the certain country they don't bother about the conditions of the needy countries second thing is that it creates moral hazards some countries do not progress because they are always in need they know that there is an organization that would provide them with help so it creates this IMF is also creating some moral hazards among countries as well now there is a lot of criticism on IMF as well because of the policies of IMF there is a lot of criticism on IMF that many people consider it as a

world's predatory lender and that it makes the nation poorer because of the heavy interest rates so we can see many good and many bad points of IMF.

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