The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

International Financial Institutions (IFIs)

  • John Toye
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2638

Abstract

The International Monetary Fund was established to manage international payments post-Second World War. The gold exchange standard re-established current account convertibility in the industrialized nations and oversaw rapid growth of international trade. After that standard collapsed in 1971 the IMF ran stabilization programmes for developing countries, with mixed success. The World Bank was set up to provide medium-term loans at concessional interest rates for (post-war) reconstruction and to develop capital-poor areas. In 1979 it initiated programme lending with conditions to promote economic adjustment. Conditionality has been under-enforced but increasingly loans go to countries that show commitment to liberal economic reforms.

Keywords

Baker Plan Bretton Woods agreement Capital account controls Conditionality Convertibility Fixed exchange rates Floating exchange rates Gold exchange standard International capital flows International Development Agency (IDA) International financial institutions International Monetary Fund Keynes, J.M. Mexican debt crisis 1982 Poverty Reduction Strategy Papers Special Drawing Rights (SDRs) World Bank 

JEL Classifications

O16 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • John Toye
    • 1
  1. 1.