Focus: GS-III Indian Economy, Prelims
Why in news?
The COVID-19 pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief said on 27th March 2020.
- Over 80 countries, mostly with low incomes, have already requested emergency aid from the International Monetary Fund.
- $2.2 trillion economic package was approved by the U.S. Senate which is absolutely necessary to cushion the world’s largest economy against an abrupt drop in economic activities.
International Monetary Fund (IMF)
- International Monetary Fund (IMF), United Nations (UN) specialized agency, founded at the Bretton Woods Conference in 1944 to secure international monetary cooperation, to stabilize currency exchange rates, and to expand international liquidity (access to hard currencies).
The IMF functions in three main areas:
- Overseeing the economies of member countries
- Lending to countries with balance of payments issues
- Helping member countries modernize their economies
- The International Monetary Fund aims to reducing global poverty, encouraging international trade, and promoting financial stability and economic growth.
- The IMF has three main functions: overseeing economic development, lending, and capacity development.
- Through economic surveillance, the IMF monitors developments that affect member economies as well as the global economy as a whole.
- The IMF lends to its member nations with balance of payment problems so they can strengthen their economies.
- The group also provides assistance, policy advice, and training through its various technical assistance programs.