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International Economic Institutions Paper

International Economic Institutions

International Economic Institutions:

The three major international economic institutions are the International Monetary Fund, the World Bank Organization, and the World Trade Organization. These three organizations were all created with the purpose of helping out the world economy, and to lend money to countries on the verge of economic crisis. These three organizations are there to try to help with currency issues between countries, whether it is in trade, exchange, or payments; they are here to alleviate some of the difficulty in the process. The International Monetary Fund (IMF) is principally created to ensure stable exchange rates between the currencies of the various sovereign states. This would have allowed for free convertibility between different currencies. The major problem with the IMF is that it takes over the economies of the countries that it saves form economic crisis. The policies used by the IMF to run a countries economy are controversial, because they create unemployment and lower the standard of living in those countries. The World Bank Organization (World Bank) was created to provide loans to countries that do not have good enough credit to attract private capital, in nation building projects. These projects that the Bank assists in are

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