One study of the course was on the International Monetary Fund that was created at the Bretton Woods conference. The IMF is an international organization of 183 member countries, established to promote international monetary cooperation, exchange stability, orderly exchange arrangements and temporary financial assistance to countries to help ease balance of payments adjustment. In this article, the International Monetary Fund approved $1.2 billion (SDR 976 million) in loans for Argentina. I have done some research on the Argentina’s past economic development that is based on IMF report. The following are some interesting facts. Most prominent – in light of Argentina’s protracted experience with high inflation and episodes of hyperinflation – has been the 1991 Convertibility Plan, reforming the exchange rate system, and the 1992 central bank charter. In the exchange rate reform, the currency was pegged to the U.S. dollar. Complementing the Convertibility Plan has been significant trade policy reform, virtually eliminating export tariffs, substantially reducing non-tariff barriers, and greatly reducing average import tariffs. Removing such distortions has helped integrate Argentina with world markets.Argentina also made significant progress during the 1990s in reducing the scope of public sector involvement in the economy. Key policy actions included privatizing most of formerly extensive collection of state enterprises and provincial banks; simplifying the tax system etc. Another interesting fact is that since 1992 financial sector reforms have also been prominent, with advances in banking regulation.Based on the past reforms and country’s new economic-reform program, IMF believes that Argentina can get out of recession. Based on the IMF report and this article I can agree with what Mr. Koehler said:” The strengthened program deserves strong support of the international community.”...
