QUESTION TWO: 500 words for 25 marks
The International Monetary Fund (IMF) was established under an international agreement reached during the Second World War. Despite the enormous changes that have taken place in the global economy since that time, the IMF continues to be an effective voice in the regulation of the global capital market.
DISCUSS briefly the creation, development and purpose of the IMF and its current role in the modern global economy, with specific focus on its input into capital market regulation.
In particular, BRIEFLY EXAMINE the IMFs system of Special Drawing Rights (SDRs) and provide an example of the use made of these convertible currency instruments.
SPECIFIC mention must be made of any international agreements relevant to the IMF that have been entered into related to either the IMF or SDRs.
Students might refer to:
- Williamson, J., (2009) Understanding Special Drawing Rights (SDRs) Policy Brief, Peterson Institute for International Economics PB09-11, click: HERE
- Loxley, J. (2011) Reflections on Change and Continuity at the IMF 32(3) Review of International Political Economy 223
- Alessandrini, P. and Fratianni, M., (2009) International Monies, Special Drawing Rights, and Supernational Money Indiana University, click: HERE
- Lombardi, D. and Woods, N. (2008) The Politics of Influence: An Analysis of IMF Influence 15(5) Review of International Political Economy 711
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