Although, capitalism has only been around for approximately 100 years as an idea, its propagation around the globe has been relatively successful. However, the propagation has had its failures. For instance, the gold standard as a monetary system for world trade had its weaknesses. The gold standard first began to have problems during World War I (1914-1919) when countries tried to expand the money supply without the additional gold that they would need. When the IMF was established in 1944 by a United Nations conference held at Bretton Woods, New Hampshire, the Allied Powers of World War II also established a U.S. dollar-based international monetary system. Under the agreement of Bretton Woods, the IMF and the World Bank began to monitor the economics of world market.
History and Purpose of the IMF
The IMF was conceived for economic cooperation designed to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s.
Article I of the Articles of Agreement states that the purposes of the IMF are as follows: the IMF is responsible for promoting international monetary cooperation; facilitating the expansion and balanced growth of international trade; promoting exchange stability; assisting in the establishment of a multilateral system of payments; and making its resources available (under adequate safeguards) to members experiencing balance of payments difficulties. More generally, and in accordance with its other purposes, the IMF is responsible for ensuring the stability of the international financial system.
The Organizational Structure of the IMF: the Board of Governors, International Monetary and Financial committee, Executive Board and the Managing Director.
The top link of the chain of command is the Board of Governors, which is composed of ministers of finance or heads of central banks (or other officials of comparable rank) from each of...