Problem Set - The International Monetary Fund

Civil Society Presentation, May 7, 2003

Due Friday, May 9. 40 pts.

Prof. Foldvary

Please write your first name then last name on the upper right corner.

Please either print your report or write legibly so it is easy to read.

(Difficult-to-read papers will be returned for rewrite.)

Your report must be your own in your own words.

Do not copy lengthy quotes from other sources.

1. Briefly describe the IMF and what it does.

2. Describe the global monetary system prior to World War I.

3. Describe the global monetary system established by the Bretton Woods conference, including the role played by the IMF. Why did it break down?

4. Describe the difference between central banking and free-market banking.

5. What role does real estate play in economic booms and busts?

How does government fiscal policy relate to the real-estate role?

How does government monetary policy relate to the real-estate role?

6. Describe the global monetary system that has existed since 1971.

7. What have been the effects and results of the IMF?

8. Would land reform be beneficial to less developed countries?

If so, why does the IMF not promote land reform?

What would be the most effective way to implement land reform?

9. What is the relationship between monetary policy and interest rates?

What is the relationship between interest rates and economic investment?

10. What monetary and fiscal policies would best provide for stability and prosperity?