Reflective Log: Analyzing the International Monetary Fund's Impact

This reflective log examines the role of the International Monetary Fund (IMF) in global financial stability, drawing upon the student's analysis of its functions, services, and impact on member countries. The student reflects on the IMF's role in assisting with balance of payments adjustments, managing exchange rates, and providing financial support during crises, particularly in the context of the 2007-09 financial emergency. The log explores the IMF's services, including surveillance, financial, and technical support, while also noting criticisms and comparing the IMF with the World Bank. The student discusses research methodologies, data collection, and analysis, concluding that the IMF plays a vital role in supporting countries during financial crises and promoting international monetary cooperation. The log highlights the importance of evaluating the IMF's effectiveness through its processes and regulatory bodies, emphasizing its focus on financial stability, in contrast to the World Bank's emphasis on economic growth. The student uses both primary and secondary data to support their arguments and concludes with a discussion of the IMF's significance in promoting higher employment, facilitating international trade, and securing financial stability.

REFLECTIVE LOG

It has been observed by me that International monetary fund acts an aid for the financial
services for the entire range of international markets. These funds can help in overcoming the
financial crisis. I have learned that while the financial emergency in 2007-09, government was
facing a huge amount of challenges regarding this. Also, there are various functions of IMF such
as assisting in the balance of payments adjustment, firmness of exchange rates, helping in these
financial crisis by providing international coordination and additional objectives (Mirakhor,
2010). In the research, I analysed that initially, there were various issues. Lack of knowledge
about the connections along with the risk factors for the plans that are money related. After that
the second factor I realised was the emergency and control administration were managed at the
national level. The surveillance on a person's foundations and if it were independent of each
other, the entire framework acts was as steady. The research was based on providing financial
stability to overcome the economy of the world and to prevent them from these financial issues
at the time of recession. It has been observed by me that IMF is only about to provide them the
financial stability. Their forte along with this is to manage the exchange rates as well.
I observed that IMF actually deals with three major services that includes surveillances,
financial and technical support as well. It has been observed by me that the company has not
fulfilled all the objectives and also affected badly on some member countries like they have been
said to repay the loan within a short period of time etc.
After analysing the literature review section, I realised that IMF played an important part
in providing the financial assistance to the countries suffering from this critical issue. Also, for
managing and overcoming the lack of funds so that loans can be re payee, the actual financial
condition of the country must be evaluated first. I came to know about various methods and
techniques that the country is using for managing the shortage and the related crisis. These
methods were promoting monetary cooperation at the international level by various financial
organisations as World Bank or IMF, whose forte is to give the machinery for consolidation and
resolve various international problems that are financial (Albu, 2011). I learned that the actual
efficiency of IMF depends upon some factors as on the processes and the international regulatory
bodies.
In the research, I have analysed that the IMF works for promoting higher employment,
monetary cooperation globally, facilitating international trade and securing the financial stability.
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I researched that all the countries have their focus on maximising the export level. The
government wants to motivate them for a huge number of exports of services at goods and that
too at international level. I have also done a comparison between the IMF and the World Bank.
IMF considers that their main focus is on the stability of the economy whereas World Bank
focuses on the growth of economy. IMF has 188 members whereas IBRD also have 188
members along with the IDA of 172 member countries (Mirakhor, 2010). I have also analysed
that the IMF provides assistance in terms of financial help to the member countries where the
World Bank provides specific lending to the member countries when they require. After
comparing both, I realised that IMF gives the borrowings to the government of the member
countries whereas World Bank helps by giving the facilities and services to the poor countries
who aim for generating projects which can help them excluding themselves from poverty.
In the research, I analysed that there are various loans that IMF provide to the member
countries and these can be buffer stock, extended fund and the supplementary financing
facilities. Also the contingency and the compensatory facilities are being provided to the member
countries who need loans so as to overcome the financial losses.
While evaluating the accurate methodology for the research, it was important for me to
understand the all so that I can be able to choose the better one. I have learned that there are
actually two types, one is qualitative and the other is quantitative research. Qualitative deals with
various loop options under it whereas the quantitative one is a form of investigation that provides
the outcomes in quantitative form (Ostry, Berg and Tsangarides, 2014). For collecting the data, I
had two options, primary and secondary. I can collect primary data from interview experiments
etc. but I felt it as a more time consuming method. I applied secondary data which I took from
books, journals etc. It was an easy approach and was less time consuming.
After that, I had to check about the validity of the data and it only depends upon the
effectiveness and appropriateness of the information. Also, it should be reliable as well. After the
analysis of data, which is considered as the most essential part of the research, I observed that
for proper analysis, some terms must be considered as the objectives, justifications, methods
used and the data. These act as very essential terms for accurate analysis and evaluation of data.
After evaluating the whole report, I concluded that there is a very important role of IMF
in providing help and support to the member countries at the time of any financial crisis. A
specific assessment of the primary and secondary data helped in preparing an efficient policy for
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managing the economy of the country. The comparison between the IMF and the world bank
also helped a lot in evaluating the differences between two, although they both provide help and
support to the member countries. I realised that IMF provides much better services to the people
suffering than the World Bank. By including all the international financial policies and norms,
the overall financial emergency can be overcome. I realised that the IMF is focused to gain the
stability in the international exchange rate. I can further evaluate the validity of the outcomes
through the level of experience.
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REFERENCES
Books and Journals
Ostry, M. J. D., Berg, M. A. and Tsangarides, M. C. G., 2014. Redistribution, inequality, and
growth. International Monetary Fund.
Albu, G., 2011. International Monetary Fund. Browser Download This Paper.
Mirakhor, A., 2010. Rethinking the governance of the International Monetary Fund.
International Monetary Fund.
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