Economics is a social science concerned chiefly with description and analysis of the production and consumption of goods and services according to the Merriam-Webster Dictionary. Economics focuses on the behaviour and interactions of economic agents and how economies work, consistent with this focus, textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behaviour of elements in the economy, including individual agents and markets, their interactions. Individual agents may include, for example, firms, macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, economic growth, and the public policies that address these issues. Economic analysis can be applied throughout society, as in business, health care, Economic analyses may be applied to such diverse subjects as crime, the family, politics, social institutions, war and the environment. At the turn of the 21st century, the domain of economics in the social sciences has been described as economic imperialism.
The ultimate goal of economics is to improve the conditions of people in their everyday life. There are a variety of definitions of economics. Some of the differences may reflect evolving views of the subject or different views among economists, to supply the state or commonwealth with a revenue for the publick services. Say, distinguishing the subject from its uses, defines it as the science of production, distribution. On the satirical side, Thomas Carlyle coined the dismal science as an epithet for classical economics, in this context and it enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. He affirmed that previous economists have usually centred their studies on the analysis of wealth, how wealth is created and consumed, but he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it, generates both cost and benefits, resources are used to attain the goal.
If the war is not winnable or if the costs outweigh the benefits. Some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets, there are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. The same source reviews a range of included in principles of economics textbooks. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which the author believes economics is evolving, microeconomics examines how entities, forming a market structure, interact within a market to create a market system
1997 Asian financial crisis
At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, South Korea and Thailand were the countries most affected by the crisis. Hong Kong, Laos and the Philippines were hurt by the slump, China, Singapore and Vietnam were less affected, although all suffered from a loss of demand and confidence throughout the region. Foreign debt-to-GDP ratios rose from 100% to 167% in the four large Association of Southeast Asian Nations economies in 1993–96, in South Korea, the ratios rose from 13% to 21% and as high as 40%, while the other northern newly industrialized countries fared much better. Only in Thailand and South Korea did debt service-to-exports ratios rise, the efforts to stem a global economic crisis did little to stabilize the domestic situation in Indonesia, however. After 30 years in power, President Suharto was forced to step down on 21 May 1998 in the wake of rioting that followed sharp price increases caused by a drastic devaluation of the rupiah.
The effects of the crisis lingered through 1998, in 1998 the Philippines growth dropped to virtually zero. By 1999, analysts saw signs that the economies of Asia were beginning to recover, after the 1997 Asian Financial Crisis, economies in the region are working toward financial stability on financial supervision. Until 1999, Asia attracted almost half of the capital inflow into developing countries. The economies of Southeast Asia in particular maintained high interest rates attractive to investors looking for a high rate of return. As a result, the regions received a large inflow of money. At the same time, the economies of Thailand, Indonesia, Singapore. This achievement was widely acclaimed by financial institutions including IMF and World Bank, the causes of the debacle are many and disputed. Thailands economy developed into an economic bubble fueled by hot money and more was required as the size of the bubble grew. The same type of situation happened in Malaysia, and Indonesia, the short-term capital flow was expensive and often highly conditioned for quick profit.
Development money went in an uncontrolled manner to certain people only, not particularly the best suited or most efficient. As the U. S. economy recovered from a recession in the early 1990s, the U. S. Federal Reserve Bank under Alan Greenspan began to raise U. S. interest rates to head off inflation. S. dollar. For the Southeast Asian nations which had pegged to the U. S. dollar
Jersey, officially the Bailiwick of Jersey, is a Crown dependency of the United Kingdom, ruled by the Crown in right of Jersey, off the coast of Normandy, France. Jersey was part of the Duchy of Normandy, whose dukes went on to become kings of England from 1066. After Normandy was lost by the kings of England in the 13th century, and the ducal title surrendered to France, Jersey is a self-governing parliamentary democracy under a constitutional monarchy, with its own financial and judicial systems, and the power of self-determination. The Lieutenant Governor on the island is the representative of the Queen. The island of Jersey is the largest of the Channel Islands, although the bailiwicks of Jersey and Guernsey are often referred to collectively as the Channel Islands, the Channel Islands are not a constitutional or political unit. Jersey has a relationship to the Crown from the other Crown dependencies of Guernsey. It is not part of the United Kingdom, and has an identity separate from that of the UK.
The definition of United Kingdom in the British Nationality Act 1981 is interpreted as including the UK, Jersey is not fully part of the European Union but has a special relationship with it, notably being treated as within the European Community for the purposes of free trade in goods. The name Caesarea has been used as the Latin name for Jersey since William Camdens Britannia, the Latin name Caesarea was applied to the colony of New Jersey as Nova Caesarea. Andium and Augia were used in antiquity, scholars variously surmise that Jersey and Jèrri derive from jarð or jarl, or perhaps a personal name, Geirr. The ending -ey denotes an island, Jersey history is influenced by its strategic location between the northern coast of France and the southern coast of England, the islands recorded history extends over a thousand years. La Cotte de St Brelade is a Palaeolithic site inhabited before rising sea levels transformed Jersey into an island, Jersey was a centre of Neolithic activity, as demonstrated by the concentration of dolmens.
Evidence of Bronze Age and early Iron Age settlements can be found in locations around the island. In June 2012 it was announced what could be Europes largest hoard of Iron Age coins had been found in Grouville by two persons using metal detectors, the hoard may be worth up to £10 M. People had been searching for treasure for 30 years. It was reported that the hoard weighed about three quarters of a tonne and could contain up to 50,000 Roman and Celtic coins, in 2012 the same two men had found 60 Iron Age coins in the same area. Jersey was part of Neustria with the same Gallo-Frankish population as the continental mainland, Jersey was invaded by Vikings in the 9th century. In 933 it was annexed to the future Duchy of Normandy, together with the other Channel Islands and Avranchin, by William Longsword, count of Rouen and it became one of the Norman Islands
Speculation is the purchase of an asset with the hope that it will become more valuable at a future date. Many speculators pay little attention to the value of a security. Speculation can in principle involve any tradable good or financial instrument, Speculators are particularly common in the markets for stocks, commodity futures, fine art, real estate, and derivatives. The number of shareholders increased, from 4.4 million in 1900 to 26 million in 1932, the view of what distinguishes investment from speculation and speculation from excessive speculation varies widely among pundits and academics. Some sources note that speculation is simply a higher form of investment. Others define speculation more narrowly as positions not characterized as hedging, the agency emphasizes that speculators serve important market functions, but defines excessive speculation as harmful to the proper functioning of futures markets. According to Ben Graham in The Intelligent Investor, the prototypical defensive investor is.
one interested chiefly in safety plus freedom from bother, Speculation is condemned on ethical-moral grounds as creating money from money and thereby promoting the vices of avarice and gambling. When a harvest is too small to satisfy consumption at its rate, speculators come in. Their purchases raise the price, thereby checking consumption so that the supply will last longer. Producers encouraged by the price further lessen the shortage by growing or importing to reduce the shortage. On the other side, when the price is higher than the speculators think the facts warrant and this reduces prices, encouraging consumption and exports and helping to reduce the surplus. If any market, such as pork bellies, had no speculators, with fewer players in the market, there would be a larger spread between the current bid and ask price of pork bellies. By contrast, a commodity speculator may profit the difference in the spread and, in competition with other speculators, some schools of thought argue that speculators increase the liquidity in a market, and therefore promote an efficient market.
This efficiency is difficult to achieve without speculators, a very beneficial by-product of speculation for the economy is price discovery. On the other hand, as more speculators participate in a market, underlying real demand and supply can diminish compared to trading volume, Speculators perform a very important risk bearing role that is beneficial to society. For example, a farmer might be considering planting corn on some unused farmland, however, he might not want to do so because he is concerned that the price might fall too far by harvest time. By selling his crop in advance at a price to a speculator, he is now able to hedge the price risk. Thus, speculators can actually increase production through their willingness to take on risk, they make the prices better reflect the true quality of operation of the firms
Isle of Man
The Isle of Man, known simply as Mann, is a self-governing crown dependency in the Irish Sea between England and Northern Ireland. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann, the Lord of Mann is represented by a Lieutenant Governor. Foreign relations and defence are the responsibility of the British Government, the island has been inhabited since before 6500 BC. Gaelic cultural influence began in the 5th century and the Manx language, in 627, Edwin of Northumbria conquered the Isle of Man along with most of Mercia. In the 9th century, Norsemen established the Kingdom of the Isles, magnus III, King of Norway, was known as King of Mann and the Isles between 1099 and 1103. In 1266, the became part of Scotland under the Treaty of Perth. After a period of alternating rule by the kings of Scotland and England, the short form often used in English, Mann, is derived from the Manx Mannin, though sometimes the name is written as Man. The earliest recorded Manx form of the name is Manu or Mana, the Old Irish form of the name is Manau or Mano.
Old Welsh records named it as Manaw, reflected in Manaw Gododdin, the name for an ancient district in north Britain along the lower Firth of Forth. The oldest known reference to the calls it Mona, in Latin, in the 1st century CE, Pliny the Elder records it as Monapia or Monabia. Later Latin references have Mevania or Mænavia, and Eubonia or Eumonia by Irish writers and it is found in the Sagas of Icelanders as Mön. The name is cognate with the Welsh name of the island of Anglesey, Ynys Môn, usually derived from a Celtic word for mountain. The name was at least secondarily associated with that of Manannán mac Lir in Irish mythology, later, a Manannán is recorded as the first king of Mann in a Manx poem. The island was cut off from the islands around 8000 BC. The first residents were hunter gatherers and fishermen, examples of their tools are kept at the Manx Museum. There were the local Ronaldsway and Bann cultures, during the Bronze Age, burial mounds became smaller. Bodies were put in stone-lined graves with ornamental containers, the Bronze Age burial mounds created long-lasting markers around the countryside.
The ancient Romans knew of the island and called it Insula Manavia although it is whether they conquered the island
Russia, officially the Russian Federation, is a country in Eurasia. The European western part of the country is more populated and urbanised than the eastern. Russias capital Moscow is one of the largest cities in the world, other urban centers include Saint Petersburg, Yekaterinburg, Nizhny Novgorod. Extending across the entirety of Northern Asia and much of Eastern Europe, Russia spans eleven time zones and incorporates a range of environments. It shares maritime borders with Japan by the Sea of Okhotsk, the East Slavs emerged as a recognizable group in Europe between the 3rd and 8th centuries AD. Founded and ruled by a Varangian warrior elite and their descendants, in 988 it adopted Orthodox Christianity from the Byzantine Empire, beginning the synthesis of Byzantine and Slavic cultures that defined Russian culture for the next millennium. Rus ultimately disintegrated into a number of states, most of the Rus lands were overrun by the Mongol invasion. The Soviet Union played a role in the Allied victory in World War II.
The Soviet era saw some of the most significant technological achievements of the 20th century, including the worlds first human-made satellite and the launching of the first humans in space. By the end of 1990, the Soviet Union had the second largest economy, largest standing military in the world. It is governed as a federal semi-presidential republic, the Russian economy ranks as the twelfth largest by nominal GDP and sixth largest by purchasing power parity in 2015. Russias extensive mineral and energy resources are the largest such reserves in the world, making it one of the producers of oil. The country is one of the five recognized nuclear weapons states and possesses the largest stockpile of weapons of mass destruction, Russia is a great power as well as a regional power and has been characterised as a potential superpower. The name Russia is derived from Rus, a state populated mostly by the East Slavs. However, this name became more prominent in the history, and the country typically was called by its inhabitants Русская Земля.
In order to distinguish this state from other states derived from it, it is denoted as Kievan Rus by modern historiography, an old Latin version of the name Rus was Ruthenia, mostly applied to the western and southern regions of Rus that were adjacent to Catholic Europe. The current name of the country, Россия, comes from the Byzantine Greek designation of the Kievan Rus, the standard way to refer to citizens of Russia is Russians in English and rossiyane in Russian. There are two Russian words which are translated into English as Russians
Guernsey is a jurisdiction within the Bailiwick of Guernsey, a Crown dependency. The jurisdiction is not part of the United Kingdom, however and most foreign relations are handled by the British Government. Taken together with the jurisdictions of Alderney and Sark it forms the Bailiwick of Guernsey. The two Bailiwicks of Guernsey and Jersey together form the geographical grouping known as the Channel Islands, the name Guernsey, as well as that of neighbouring Jersey, is of Old Norse origin. The second element of word, -ey, is the Old Norse for island, while the original root, guern, is of uncertain origin. Around 6000 BC, rising seas created the English Channel and separated the Norman promontories that became the bailiwicks of Guernsey and Jersey from continental Europe, neolithic farmers settled on its coast and built the dolmens and menhirs found in the islands today. During their migration to Brittany, Britons occupied the Lenur islands including Sarnia or Lisia and Angia, travelling from the Kingdom of Gwent, Saint Sampson, the abbot of Dol in Brittany, is credited with the introduction of Christianity to Guernsey.
In 933 AD, the Cotentin Peninsula including Avranchin which included the islands, were placed by the French King Ranulf under the control of William I, the island of Guernsey and the other Channel Islands represent the last remnants of the medieval Duchy of Normandy. During the Middle Ages, the island was a haven for pirates that would use the technique to ground ships close to her waters. This intensified during the Hundred Years War, starting in 1339, the Guernsey Militia was operational in 1337 and would help defend the island for a further 600 years. In 1372, the island was invaded by Aragonese mercenaries under the command of Owain Lawgoch and his dark-haired mercenaries were absorbed into Guernsey legend as invading fairies from across the sea. In the mid-16th century, the island was influenced by Calvinist reformers from Normandy, during the Marian persecutions, three women, the Guernsey Martyrs, were burned at the stake for their Protestant beliefs. During the English Civil War, Guernsey sided with the Parliamentarians, the allegiance was not total, there were a few Royalist uprisings in the southwest of the island, while Castle Cornet was occupied by the Governor, Sir Peter Osborne, and Royalist troops.
In December 1651, with honours of war, Castle Cornet surrendered. By the beginning of the 18th century, Guernseys residents were starting to settle in North America, the threat of invasion by Napoleon prompted many defensive structures to be built at the end of that century. The 19th century saw an increase in the prosperity of the island, due to its success in the global maritime trade. During the First World War, about 3,000 island men served in the British Expeditionary Force, of these, about 1,000 served in the Royal Guernsey Light Infantry regiment formed from the Royal Guernsey Militia in 1916. For most of the Second World War, the Channel Islands were occupied by German troops, before the occupation, 80% of Guernsey children had been evacuated to England to live with relatives or strangers during the war
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country in western Europe. Lying off the north-western coast of the European mainland, the United Kingdom includes the island of Great Britain, Northern Ireland is the only part of the United Kingdom that shares a land border with another sovereign state—the Republic of Ireland. The Irish Sea lies between Great Britain and Ireland, with an area of 242,500 square kilometres, the United Kingdom is the 78th-largest sovereign state in the world and the 11th-largest in Europe. It is the 21st-most populous country, with an estimated 65.1 million inhabitants, this makes it the fourth-most densely populated country in the European Union. The United Kingdom is a monarchy with a parliamentary system of governance. The monarch is Queen Elizabeth II, who has reigned since 6 February 1952, other major urban areas in the United Kingdom include the regions of Birmingham, Glasgow and Manchester.
The United Kingdom consists of four countries—England, Wales, the last three have devolved administrations, each with varying powers, based in their capitals, Edinburgh and Belfast, respectively. The relationships among the countries of the UK have changed over time, Wales was annexed by the Kingdom of England under the Laws in Wales Acts 1535 and 1542. A treaty between England and Scotland resulted in 1707 in a unified Kingdom of Great Britain, which merged in 1801 with the Kingdom of Ireland to form the United Kingdom of Great Britain and Ireland. Five-sixths of Ireland seceded from the UK in 1922, leaving the present formulation of the United Kingdom of Great Britain, there are fourteen British Overseas Territories. These are the remnants of the British Empire which, at its height in the 1920s, British influence can be observed in the language and legal systems of many of its former colonies. The United Kingdom is a country and has the worlds fifth-largest economy by nominal GDP. The UK is considered to have an economy and is categorised as very high in the Human Development Index.
It was the worlds first industrialised country and the worlds foremost power during the 19th, the UK remains a great power with considerable economic, military and political influence internationally. It is a nuclear weapons state and its military expenditure ranks fourth or fifth in the world. The UK has been a permanent member of the United Nations Security Council since its first session in 1946 and it has been a leading member state of the EU and its predecessor, the European Economic Community, since 1973. However, on 23 June 2016, a referendum on the UKs membership of the EU resulted in a decision to leave. The Acts of Union 1800 united the Kingdom of Great Britain, Scotland and Northern Ireland have devolved self-government
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is regarded as the value of one currency in relation to another currency. For example, an exchange rate of 119 Japanese yen to the United States dollar means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in relation to yen is ¥119, trading from 20,15 GMT on Sunday until 22,00 GMT Friday. The spot exchange rate refers to the current exchange rate, the forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. In the retail currency exchange market, different buying and selling rates will be quoted by money dealers, most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, the quoted rates will incorporate an allowance for a dealers margin in trading, or else the margin may be recovered in the form of a commission or in some other way.
Different rates may be quoted for cash, a form or electronically. The higher rate on documentary transactions has been justified as compensating for the additional time, on the other hand, cash is available for resale immediately, but brings security and transportation costs, and the cost of tying up capital in a stock of banknotes. Currency for international travel and cross-border payments is predominantly purchased from banks, foreign exchange brokerages and these retail outlets source currency from the inter-bank markets, which are valued by the Bank for International Settlements at 5.3 trillion US dollars per day. The purchase is made at the contract rate. Retail customers will be charged, in the form of commission or otherwise, to cover the providers costs, one form of charge is the use of an exchange rate that is less favourable than the wholesale spot rate. The difference between retail buying and selling prices is referred to as the bid-ask spread, in the foreign exchange market, a currency pair is the quotation of the relative value of a currency unit against the unit of another currency.
The quotation EUR/USD1.3225 means that 1 Euro will buy 1.3225 US dollars, in other words, this is the price of a unit of Euro in US dollars. Here, EUR is called the Fixed currency, while USD is called the Variable currency, there is a market convention that determines which is the fixed currency and which is the variable currency. In most parts of the world, the order is, EUR – GBP – AUD – NZD – USD – others. Accordingly, in a conversion from EUR to AUD, EUR is the currency, AUD is the variable currency. Cyprus and Malta, which were quoted as the base to the USD, in some areas of Europe and in the retail market in the United Kingdom, EUR and GBP are reversed so that GBP is quoted as the fixed currency to the euro
China, officially the Peoples Republic of China, is a unitary sovereign state in East Asia and the worlds most populous country, with a population of over 1.381 billion. The state is governed by the Communist Party of China and its capital is Beijing, the countrys major urban areas include Shanghai, Beijing, Shenzhen and Hong Kong. China is a power and a major regional power within Asia. Chinas landscape is vast and diverse, ranging from forest steppes, the Himalaya, Karakoram and Tian Shan mountain ranges separate China from much of South and Central Asia. The Yangtze and Yellow Rivers, the third and sixth longest in the world, Chinas coastline along the Pacific Ocean is 14,500 kilometers long and is bounded by the Bohai, East China and South China seas. China emerged as one of the worlds earliest civilizations in the basin of the Yellow River in the North China Plain. For millennia, Chinas political system was based on hereditary monarchies known as dynasties, in 1912, the Republic of China replaced the last dynasty and ruled the Chinese mainland until 1949, when it was defeated by the communist Peoples Liberation Army in the Chinese Civil War.
The Communist Party established the Peoples Republic of China in Beijing on 1 October 1949, both the ROC and PRC continue to claim to be the legitimate government of all China, though the latter has more recognition in the world and controls more territory. China had the largest economy in the world for much of the last two years, during which it has seen cycles of prosperity and decline. Since the introduction of reforms in 1978, China has become one of the worlds fastest-growing major economies. As of 2016, it is the worlds second-largest economy by nominal GDP, China is the worlds largest exporter and second-largest importer of goods. China is a nuclear weapons state and has the worlds largest standing army. The PRC is a member of the United Nations, as it replaced the ROC as a permanent member of the U. N. Security Council in 1971. China is a member of numerous formal and informal multilateral organizations, including the WTO, APEC, BRICS, the Shanghai Cooperation Organization, the BCIM, the English name China is first attested in Richard Edens 1555 translation of the 1516 journal of the Portuguese explorer Duarte Barbosa.
The demonym, that is, the name for the people, Portuguese China is thought to derive from Persian Chīn, and perhaps ultimately from Sanskrit Cīna. Cīna was first used in early Hindu scripture, including the Mahābhārata, there are, other suggestions for the derivation of China. The official name of the state is the Peoples Republic of China. The shorter form is China Zhōngguó, from zhōng and guó and it was applied to the area around Luoyi during the Eastern Zhou and to Chinas Central Plain before being used as an occasional synonym for the state under the Qing
A tax is a financial charge or other levy imposed upon a taxpayer by a state or the functional equivalent of a state to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent, the legal definition and the economic definition of taxes differ in that economists do not regard many transfers to governments as taxes. For example, some transfers to the sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments, governments obtain resources by creating money and coins, through voluntary gifts, by imposing penalties, by borrowing, and by confiscating wealth. In modern taxation systems, governments levy taxes in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states, the method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics.
Tax collection is performed by a government agency such as the Canada Revenue Agency, when taxes are not fully paid, the state may impose civil penalties or criminal penalties on the non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing and/or to alter prices in order to affect demand and their functional equivalents throughout history have used money provided by taxation to carry out many functions. A governments ability to raise taxes is called its fiscal capacity, when expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past debts, governments use taxes to fund welfare and public services. These services can include education systems, pensions for the elderly, unemployment benefits, energy and waste management systems are common public utilities. A tax effectively changes relative prices of products and they have therefore sought to identify the kind of tax system that would minimize this distortion.
Governments use different kinds of taxes and vary the tax rates, taxes on the poor supported the nobility, modern social-security systems aim to support the poor, the disabled, or the retired by taxes on those who are still working. A states tax system often reflects its communal values and the values of those in current political power. To create a system of taxation, a state must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing or administering the tax system, in countries where the public does not have a significant amount of influence over the system of taxation, that system may reflect more closely the values of those in power. All large businesses incur administrative costs in the process of delivering revenue collected from customers to the suppliers of the goods or services being purchased. Taxation is no different, the resource collected from the public through taxation is always greater than the amount which can be used by the government, the difference is called the compliance cost and includes the labour cost and other expenses incurred in complying with tax laws and rules
International Monetary Fund
The International Monetary Fund is an international organization headquartered in Washington, D. C. It now plays a role in the management of balance of payments difficulties. Countries contribute funds to a pool through a system from which countries experiencing balance of payments problems can borrow money. As of 2016, the fund had SDR477 billion, the rationale for this is that private international capital markets function imperfectly and many countries have limited access to financial markets. The IMF provides alternate sources of financing and this assistance was meant to prevent the spread of international economic crises. The IMF was intended to help mend the pieces of the economy after the Great Depression. As well, to provide investments for economic growth and projects such as infrastructure. The IMFs role was altered by the floating exchange rates post-1971. It shifted to examining the economic policies of countries with IMF loan agreements to determine if a shortage of capital was due to economic fluctuations or economic policy, the IMF researched what types of government policy would ensure economic recovery.
Rather than maintaining a position of oversight of only exchange rates and their role became a lot more active because the IMF now manages economic policy rather than just exchange rates. In addition, the IMF negotiates conditions on lending and loans under their policy of conditionality, nonconcessional loans, which include interest rates, are provided mainly through Stand-By Arrangements, the Flexible Credit Line, the Precautionary and Liquidity Line, and the Extended Fund Facility. The IMF provides emergency assistance via the Rapid Financing Instrument to members facing urgent balance-of-payments needs, the IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its member countries. This activity is known as surveillance and facilitates international cooperation, the responsibilities changed from those of guardian to those of overseer of members’ policies. In 1995 the International Monetary Fund began work on data dissemination standards with the view of guiding IMF member countries to disseminate their economic and financial data to the public.
The executive board approved the SDDS and GDDS in 1996 and 1997 respectively, the system is aimed primarily at statisticians and aims to improve many aspects of statistical systems in a country. It is part of the World Bank Millennium Development Goals, some countries initially used the GDDS, but upgraded to SDDS. The IMF does require collateral from countries for loans but requires the government seeking assistance to correct its macroeconomic imbalances in the form of policy reform, if the conditions are not met, the funds are withheld. The concept of conditionality was introduced in a 1952 Executive Board decision, conditionality is associated with economic theory as well as an enforcement mechanism for repayment