INTERNATIONAL MONETARY FUND AND ITS ROLE IN INTERNATIONAL ECONOMY

  Temurbek Usmanov, Jonibek Sattorov (Tashkent, Uzbekistan) |    Download article

Most people think of the IMF as an institution that provides emergency credits to countries that have found themselves in difficulties, either as a consequence of poor economic policies or through external circumstances, such as a sudden drop in commodity prices, or a financial crisis in a neighboring country. In return the country is obliged to impose painful austerity policies, usually involving reductions of budget deficits, through spending cuts or increased revenue (taxation), a rise in interest rates to reduce inflation, and an alteration of the exchange rate (a devaluation).