Abstract
The main purpose of the International Monetary Fund has been the promotion of economic and financial cooperation among its member countries. In order to fulfill this purpose, the Fund has come to play a central role in the international monetary scene, a role that includes the provision of financial assistance to members facing actual or potential balance of payments difficulties in support of their efforts to overcome them. The responsibilities of the Fund as a source of financial assistance are laid out in the Articles of Agreement of the institution. This basic document prescribes inter alia that the Fund will help in shortening the duration and lessening the degree of imbalance in members’ balance of payments in the context of a liberal multilateral payments system characterized by the absence of exchange restrictions and the prevalence of exchange stability. To this end, the Fund has stood ready to make its financial resources available to member countries to help them correct balance of payments imbalances without resorting to measures that run counter to national or international prosperity. In the discharge of this responsibility, an important requirement of the Articles of Agreement is that the Fund adopts policies that will provide reasonable assurances that members’ use of the institution’s resources will be temporary1. Consequently, the Fund makes resources available to members in support of policies of economic and financial adjustment undertaken either to solve their actual, or to avert their potential, balance of payments problems. The design and content of these policies have evolved in line with changes in the world economic environment and they have always reflected the particular characteristics of individual countries. But they have also sought policy adjustment paths that in the light of available financing
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“... development of a new ... approach to the theory of the international monetary system ... I believe ... that its intellectual lineage can be traced back, via Mundell’s period of service in the . . . International Monetary Fund under J. J. Polak, to the ... work on monetary equilibrium of the Dutch economist J. G. Koopmans and the subsequent development by M. W. Holtrop and the Netherlands Bank ...”
Harry G. Johnson
(Inflation and the Monetarist Controversy, 1972)
The views expressed in the paper are mine and they should not be attributed to the International Monetary Fund.
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Guitián, M. (1994). The Role of Monetary Policy in IMF Programs. In: De Beaufort Wijnholds, J.O., Eijffinger, S.C.W., Hoogduin, L.H. (eds) A Framework for Monetary Stability. Financial and Monetary Policy Studies, vol 27. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0850-8_17
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DOI: https://doi.org/10.1007/978-94-011-0850-8_17
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