Analysis of the position and operations of the International monetary fund in the global economy

The thesis analyzes how IMFs operations transformed as the changes took place in the global economy after world war two. Policy and means used by IMF to achieve its purposes are examined focusing on their effectiveness. The analysis illustrates an apparent change in the role the institution is playing in the global economy. In the first three decades after the world war two the IMFs key role was to maintain surveillance over the rules of the monetary system established at international financial conference in Bretton Woods. The introduction of floating exchange rate systems in developed countries, oil crisis and independence of many African countries caused a shift in IMFs main focus towards developing countries, long-term financing and technical assistance. The analysis concludes that the institution was only in part successful in its mission to maintain global economic stability only in part. In the nineties it reacted promptly to financial crisis by introduction of new facilities and by activating in coordination with other global players of large financial support for the affected countries. However in the period before the financial crisis occurred more attention IMF should have given more attention to precautionary measures eliminating the risks associated with capital volatility.