Question

With the lack of confidence forced President Richard Nixon to suspend official purchases or sales of gold by the U.S. Treasury on August 15, 1971. Has the IMF lost its relevance to the world's richest countries from the literature you have read thus far?

Answer 1

Over the years, many have questioned the relevance of IMF for rich countries with following aiguments : (1) Polities in advanced ecomanies has turned increasingly enwoud, - amplifying disdain for policks advocated by IMF .00 (2) years of low e insufficiently inclusive growth have narrowed the - scope for international pobly cooperation, instead fuelling disrespect for global names and international rule of law. (3.) The inclination to use IMF in pensult of national interests has . wand Us has simply opted to weapouise its own economic S tools directly . (4.) The failure on the part of IMF to predict 2007-08 Global Financial celises has also questioned the relevance of Washington Consensus un acuments, the IMF However, despite these arguments, the IMF has has played au played an important role an beoviding stability to the market economies. dan

IMF to plays its cale in stabilizing the financial systems woldwide by aisis prevention & cusis mitigation 1. Crisis prevention includes the follow (1) Technical Assistance ie capacity building of the vulnerable counties by providing technical assistance. Information provision in regular intervals to the member counties about expected shocks that counties might face. o Since Mexican ceisis, IMF has increased emphases on timely suveillance 1 l market developmails. Due to this, ego, Thai authouties were warned of the likelihood of a cuses I measues they could take to avent it. surelliance of hot money flows a shot teene capital inflows, by effective monitoring of counties capital accounts in balance of CamScahner