Goals and policies of the international monetary fund

It should not be assured however, that monetary authority alone could achieve all these goals. States are involved in unending struggle with each other, because that is the nature of state in an anarchic world; power is necessary to survive in it or to continue to fight; all states are potential enemies Waltz, 30 Liberal institutionalists believe that states can achieve security through construction of international regimes and structures.

The goal of monetary policy has been to maintain equilibrium in the balance of payments. Second, critics say that the IMF imposed the policies of the Washington Consensus on countries without understanding the distinct characteristics of the countries that made those policies difficult to carry out, unnecessary, or even counter-productive.

Preventing Possible Financial Crisis Countries are required to launch certain reforms that will regulate how the borrowed funds will be utilized to prevent fraudulent individuals from embezzling the funds. Nevertheless, the IMF assistance is considered so essential to national economic health that countries generally agree even when they have strong reservations.

Thirdly, the Fund has failed to eliminate foreign exchange restrictions imposed by its members that hamper the growth of trade. All these comprised the introduction of capitalism in Russia and other former Soviet-bloc countries and hence a shift from the state-led development to market-led development.

States make choices at balancing depending on their expectations of the capabilities prospective balancers could produce in extremis. Scholarly concerns about the costs of unilateralism came to the fore inwhen it appeared that President George W. The CBN is empowered to issue stabilization securities with banks at given interest rate designed to reduce commercial banks excess cash holding and their credit expansion.

Nevertheless, influential contemporary formulations of the theory yield the argument that by strongly demonstrating its multilateral credentials, the United States can signal benign intent and thus forestall counterbalancing. Identity politics explores world politics from the view point that IR can best be explained by analyzing a collection of identities, rather than states.

The importance of balancing proposition cannot be overstated, for it also figures crucially in the arguments of non realist scholars.

International development

It offers useful advices to member countries regarding financial markets and how to create a good business environment where investors can find it favorable.

It can be deduced from the above, that monetary policy plays a major role in promoting economic stability, poor policy implementation on the part of the monetary authority is the only constraint faced by the economy.

In view of these, the developing countries are blaming the IMF for their economic malaise. Under it, members were allowed to draw up to 25 p. This method of borrowing has become the most normal form of assistance by the Fund. Its main elements are: Rather it should be stressed that the attainment of all the goals requires co-ordinated effort of monetary authority and government agencies who have responsibility of fiscal policy, import reduction policy, debt management policy, income policy and exchange rate policy.

As a preview to understanding the monetary policies administered in Nigeria, I will briefly review the economic policy measures of that prevail in the country. These ubiquitous inclinations assumed varying forms and manifestations in international relations. The United States, by contrast, lies far from the shores of Eurasia, where the other major powers are all clustered.

This refers to the sale and purchase of securities in the money market by the central bank with the aims of influencing bank reserves interest rates and ultimately credit growth of the banking system. The achievement of this objectives has been necessitated by the phenomenal growth of international liquidity.

International Monetary Fund (IMF): Origin, Objectives and Functions

It also provides concessional assistance under its poverty reduction and growth facility and debt relief initiatives. The International Monetary Fund (IMF), conceived in July at a UN’s conference held in Bretton, New Hampshire, U.S.A is a leading global financial organization made up of countries.

Its main goals concentrate on securing financial stability, facilitating international trade, alleviating high rates of unemployment and reducing poverty. The team examines fiscal and monetary policy, exchange rate, general macroeconomic stability, and any related policies, such as labor policy, trade policy, and social policy (such as the pension system).

After the collapse of the Soviet Union, the western approach to market liberalization, privatization, fiscal austerity, and free trade that had produced economic growth in the developed countries—especially in the United States—was exported to developing countries through the International Financial Institutions (IFIs).

Since they were headquartered in Washington, D.C. the IFIs’ strategy. According to Aderibigbe (), monetary policy is a transmission mechanism which operates policy through the effects of interest of credit on economic agents which respond to different yields of various financial assets, level of aggregates demand, exchange rate overall economic activities.

The Millennium Development Goals (MDGs) are a set of development targets agreed by the international community, which center on halving poverty and improving the welfare of the world’s poorest by THE MILLENNIUM DEVELOPMENT GOALS REPORT 3 Foreword The Millennium Declaration in was a milestone in international cooperation, inspiring development.

Monetary Policy In Nigeria – The Role In Promoting Economic Stability In Nigeria Goals and policies of the international monetary fund
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Monetary Policy In Nigeria - The Role In Promoting Economic Stability In Nigeria