Explain the differences between the International Monetary S

Explain the differences between the International Monetary System and the International Monetary Fund. What are the three major types of crises most frequently addressed by the International Monetary Fund?

Solution

International monetary system refers to certain set rules, regulations and institutuons that governs the international trade between the countries of the world. IMF is a organisation that contains the member countries who come up together and discuss the monetary system and trade. The body also acts as a bank to the member countries

For examle,While international monetary system is like the constitution while the IMF is the government that implements the trade practices.

IMF actually is an ofshoot of an international monetary concept of adopting a fixed exchange rate in the neighbouring nations. The countries came together in a Bretton wood conference and established the IMF as a regulatory body for the decisions taken in the conference.

IMF\'s main is to create an international monetary coooperation. IMF plays a major role in the member country\'s decison regarding exchage rate stability. They play a major as a funder to the countries in financial difficulty. They provide funds to the government with high deficits.IMF aims basically at increasing sustainable economic development and stability.