Reference no: EM132125309

1. International Monetary Fund is a international organization headquarter in Washington, DC. This is for 189 countries to foster global financial stability, international trade, high employment and economic growth. This is to also here to help with the poverty of the world today. During World World 2 this system so devolved in 1945. All the countries that are with in this contributed to the organization. They are here to improve the economy within are own nation and the world. This system is to help with finding the corrected exchange rates between countries. During the Great Depression was a huge factor when the organization was developing. The biggest contributions with this organization is the help that the organization does for all and not just for one country. I think that being able to have the support of all nation is the correct way for theses things to grow and move forward within the world that we live in.

2. The Jamaica Agreement was a new exchange rate system that was set in place to try and stabilize inflation in the economies around the world with little government interference. This agreement was signed in 1976. The Jamaica Agreement also removed gold as the primary reserve asset of the International Money Fund (IMF) and stated that lending money was to be a last resort to countries with balance-of-payment challenges. The Jamaica Agreement replaced the previous rate exchange system that used a rate system that was freely floating and had no government involvement. This rate exchange system is still used today.