International Monetary Fund was created in 1945 with the purpose of facilitating trade, improving capital flows, controlling exchange rates and basically helping Europe reconstruct its economy after the devastation of the Second World War. However over the decades, the role expanded and changed considerably as IMF became a financial institution that advises countries on economic policies, acts like a development agency and also steps in during times of financial crisis to maintain and reestablish order. In this way IMF has been doing something which is not consistent with its original role as mandated by the Articles of Agreement of 1944.

With the end of the Bretton Woods era, IMF's role expanded considerably and it has now become the main economic regulations body of the United Nations. It plays an important in regulating world economies by offering members advice on the issues of monetary and fiscal significance. Though often seen in...
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