Académique Documents
Professionnel Documents
Culture Documents
Evolution of IMF: The most prominent contributor to the evolution of IMF is a widely known phenomenon which the world economy faced in 1930s THE GREAT DEPRESSION. It was a severe worldwide economic recession in the decade preceding the World War II. It originated in the US in 1929 starting with the fall in stock prices that began around September 4, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world. The Great Depression had devastating effects in virtually every country, rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. This lead to countries raising barriers to foreign trade, devaluing their currencies against each other to boost their exports & also curtailing their citizens to hold foreign currency. These measures however fall back on the countries leading to decline in the World trade from $3200 MI to $900 MI from 1929 to 1933. This breakdown in the trade & the non cooperation amongst the countries led the evolution of IMF. The plan was to form an institution that would oversee the international monetary system, ensure exchange rate stability & encourage members to eliminate exchange restrictions to promote World Trade.