The international economic and monetary conference at Beetton Woods in New Hampshire in the U.S.A. at July 1944. At the conference, the ‘Keynes’ plan were discussed in detail by 44 countries, and it was decided to start two international financial institution namely
I. International Monetary Fund and
II. The International Bank for Reconstruction and Development for helping member countries.
Objectives of the I.M.F.
- To promote international monetary co-operation for the solution of international monetary problems.
- To ensure stable exchange rates and avoid competitive exchange depreciation.
- To eliminate exchange controls
- To encourage international trade by removing exchange restrictions.
- To establish multinational trade and payments system.
- To provide short-term funds to member countries and enable them to correct the temporary deficits in their balance of payments without resorting to measures destructive of national or international propriety.
- To help the member countries, particularly the backward countries their productive resources, maintain higher levels of employment, secure more national income and achieve balanced economic growth.