Institutions

IMF-1944

1.     Supervises rates-not after adj. peg collapsed in 70)

2.     conditional support for BoP and developing. Too low rate, buffers from reforms

3.     policy assistance(yearly review of 150 members)

Convertibility of all currencies and stability in international monetary markets.

Pool, votes according to payment

SDR

unit of IMF account, store of value, means of exchange between countries

Inflationary

Borrow-450% of quota for 3 years

1.     Standby arrangements (usual), country will gain automatic stability, as others trust.

2.     General agreement to borrow(UK76)

17 nation's pool to help themselves and developing countries-17b SDR.

3.     Compensatory finance scheme(1/3-temporary difficulties, few conditions).

4.     Buffer stock

5.     The extended fund-LR assistance

6.     The supplementary financing-LR to undeveloped.

Plaza agreement and Louvre accord-limit fluctuations in G5 and G7 respectively

Future-emergency financing, banking development(Barings), makes too dependant of G7

The World Bank (IBRD)

loans for development programs (links to IMF)

Funding

1.     Quotas-10% is paid 90% promised

2.     Bonds-around the world

3.     Income-itself

GATT

Reduce gap between rich north and poor south.

1.     equal rights.

2.     reduce Tariffs and Quotas

3.     Trading blocks-EC was allowed, but encouraged to be outside looking.

Uruguay round