The International Monetary Fund, or IMF, was born out of the need to have a more open and better regulated financial world after the end of the Second World War. It was widely acknowledged that the economic rivalries and protectionism resulting from the Great Depression had not helped matters in the run-up to the outbreak of war.
With the Allies driving their way through Europe in the summer of 1944, 730 delegates from 44 countries gathered in Bretton Woods, New Hampshire, to discuss how best to go about achieving their aims. The following December, the IMF was born when 29 countries ratified its charter.
The IMF had three main goals: to be a forum for international economic cooperation; to promote sound economic policies among its members; and to provide financial support to members experiencing cash-flow problems, so that regular international trade could function.On 1 March 1947, the IMF got down to work.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The first shock to the Bretton Woods system came in the early 1970s when US president Richard Nixon ended the gold standard in America. Dollars could no longer be converted to gold, and that played havoc with the system of fixed international exchange rates. Countries were now at liberty to choose their own.
The Fund has also had to adapt to the flood of poorer members that wished to join its ranks, starting with the newly independent African nations in the 1950s, right up to former Soviet republics in the wake of the Cold War in the 1990s. That's not to say old members' haven't come knocking. In 1976, Britain embarrassingly applied for a $3.9bn loan in return for deep cuts in spending.
Ironically, for an organisation that was founded to foster global harmony, restructuring and sound economic policy, the IMF appeared to stoke the currency wars by its admission in October 2015 that, as The Daily Telegraph reported, "weaker currencies are still an effective tool for economies to grow their way out of trouble". It rather raises the question: is the IMF still relevant?
-
The industry at the heart of global technologyThe semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
-
What are shareholder voting rights and why do they matter?If you hold shares in a company, the chances are they’ll come with voting rights. But how do you exercise your right to vote? And is your fund manager taking it seriously?
-
31 August 1957: the Federation of Malaya declares independence from the UKFeatures On this day in 1957, after ten years of preparation, the Federation of Malaya became an independent nation.
-
13 April 1960: the first satellite navigation system is launchedFeatures On this day in 1960, Nasa sent the Transit 1B satellite into orbit to provide positioning for the US Navy’s fleet of Polaris ballistic missile submarines.
-
9 April 1838: National Gallery opens in Trafalgar Square
Features On this day in 1838, William Wilkins’ new National Gallery building in Trafalgar Square opened to the public.
-
3 March 1962: British Antarctic Territory is created
Features On this day in 1962, Britain formed the British Antarctic Territory administered from the Falkland Islands.
-
10 March 2000: the dotcom bubble peaks
Features Tech mania fanned by the dawning of the internet age inflated the dotcom bubble to maximum extent, on this day in 2000.
-
9 March 1776: Adam Smith publishes 'The Wealth of Nations'
Features On this day in 1776, Adam Smith, the “father of modern economics”, published his hugely influential book The Wealth of Nations.
-
8 March 1817: the New York Stock Exchange is formed
Features On this day in 1817, a group of brokers moved out of a New York coffee house to form what would become the biggest stock exchange in the world.
-
7 March 1969: Queen Elizabeth II officially opens the Victoria Line
Features On this day in 1969, Queen Elizabeth II took only her second trip on the tube to officially open the underground’s newest line – the Victoria Line.
