International Monetary and Financial System

Set of vocabulary flashcards covering essential terms and concepts related to the international monetary and financial system.

International Monetary Fund (IMF)

An organization established in 1945 to promote international monetary cooperation and provide financial assistance to countries in need.

Structural Adjustment Programs (SAPs)

Economic policies imposed by the IMF on countries in financial distress, requiring reforms such as fiscal adjustments and privatizations.

Balance of Payments

A record of all economic transactions between a country and the rest of the world, including current and capital accounts.

Current Account

The part of the balance of payments that includes the trade balance, net income, and direct payments.

Trade Deficit

A situation where a country's imports exceed its exports, resulting in a negative balance of trade.

Exchange Rate

The value of one currency for the purpose of conversion to another, which can appreciate or depreciate based on market conditions.

Bretton Woods System

The international monetary system established in 1944 that created fixed exchange rates and established the IMF and World Bank.

Keynes Plan

A proposal for an International Currency Union made during the Bretton Woods Conference aimed at stabilizing international payments.

White Plan

A proposal during the Bretton Woods Conference that advocated for fixed exchange rates and a stabilization fund to assist countries facing balance of payments crises.

Remittances

Money sent back home by international migrant workers to their families or others in their home countries.

Net Foreign Factor Income (NFPI)

The income generated by a country's residents in foreign countries minus the income generated by foreign residents within the country.

Fixed Exchange Rate

A currency system in which a country’s currency value is tied or pegged to another major currency or a basket of currencies.

Floating Exchange Rate

A currency system where the value of a currency is allowed to fluctuate in response to the foreign exchange market.

Trade Surplus

A situation in which a country's exports exceed its imports, resulting in a positive balance of trade.

Financialization

The increasing dominance of financial markets over the economy, affecting how firms and governments operate.

Global Credit Crisis

A financial crisis triggered by the collapse of housing prices in the US, leading to widespread economic repercussions globally.

International Development Association (IDA)

A part of the World Bank that provides interest-free loans and grants to the poorest countries.

International Bank for Reconstruction and Development (IBRD)

The original World Bank institution that focuses on funding development projects and providing financial and technical assistance.

External Debt

Money borrowed by a country that must be repaid in foreign currencies, commodities, or services.

Quotas (in IMF)

Financial contributions made by member countries to the IMF, determining their voting power and access to financing.