security that is essential to a thriving (world) economy. Many of the domestic economic goals are reiterated by the INF on an international level. To understand the current INF we will investigate the events leading up to its existence. Between 1879 and 1

ling and able to join is welcome, however, there are some governing guidelines that must be followed, included among other things is financial disclosure. When a nation decides to join the International Monetary Fund there is a financial obligation. This cost is in the form of a quota, this quota is individually set by the new nation's wealth and economic strength. 25 percent of this quota must be paid by gold or a major convertible currency, the other 75 percent is paid by the nations own currency. This quota is then used for several reasons. First, it weighs the joining nation's voting power (each nation's contribution to the total fund's value is calculated as a percentage, the nation's voting power is then equal to the that percentage). Second, the quota contributes to the general funds' value, later used to lend currency to the countries in financial need. The nations involved with the IMF reap many benefits. One of the hidden perks of the IMF is its economic counseling and surveillance. Economic counseling takes place on a yearly basis. Each year representatives of the IMF visit each participating nation's capitals and perform a series of tasks. They collect information concerning the particular nation's economic position. They collect data on the country's aggregate wages, prices, exports, along with how much currency is in circulation, and other data relating to the economic well-being of the country. The representatives then converse with the nation's officials to investigate how their economic policies have done during the last year, and what is the forecast of new economic policies for the next year. With this information the IMF representatives are able to compile a non-bias analysis of that nation's economic position. This non-bias compilation is than reviewed by other IMF representatives and ultimately forwarded to the appropriate nation. This analysis includes productive suggestions on how to improve strategies, and formulate better economic goals. This analysis is just a suggestion and cannot be enforced by any means. If the nation who receives the suggestion doesn't like it, it is their prerogative not to take its advice. When times are really in dire straits for a nation the IMF gives the participating nation a sense of security. The quotas mandatory to join the IMF now becomes the savior. Nations in real need of financial assistance are welcome to money saved by the IMF. There are guidelines of removing currency from the IMF, specifically a country who cannot pay it's debt to other nations can immediately withdraw twenty-five (25) percent of its original quota that was paid by major convertible currency or gold. If that amount is not sufficient to cover the debt, other options become available to the country. A line of credit may be extended to a nation. This line of credit is only extended if the borrowing country provides the IMF with and abides by an economic policy that will in a specific time frame repair the country's current financial problem and repay the debt. If the expectations have been meet, and the collective members of the IMF agree to lend money, the county is able to borrow against a predetermined line of credit. Installments may be withdrawn as long as the Executive Board of the IMF is satisfied that the borrowing country is following the economic policy provided to receive the loan. It is important to note, the economic policy is provided by the country who wishes to borrow. The economic policy need only be approved and followed before currency is released by the International Monetary F

Some topics in this essay:
Monetary Fund, Bretton Woods, Gold Standard, Executive Directors, Fund IMF, Board Governors, SDRs SDR's, Interim Committee, Board IMF, Standard Nations, international monetary, international monetary fund, monetary fund, gold standard, economic policy, borrowing country, ounce gold, sdr units, 35 dollars, economic position, convertible currency, major convertible currency, aggregate income aggregate, income aggregate employment, spending aggregate income,