OBJECTIVES
IMF staff economist, Jacques Polak, wrote a little-known article entitled, “Monetary Analysis of Income Formation and Payments Problems.” This 1957 article developed the framework, known as financial programming, used by the fund to craft its loan programs. Read about how the IMF uses its financial resources to help members redress balance of payments problems and to help cushion the impact of adjustment. Also, read a critique of the IMF’s global economic involvement by Henry Kissinger.

OPERATIONS
The IMF’s financial programming consists of a set of simple equations that relates the monetary sector of an economy to the balance of payments. Read about the financial organization and operations of the IMF and critical responses to its lending practices.

EFFECTIVENESS
Read about the impact of fund programs on borrowing countries’ balance of payments, current account deficits, inflation, and growth. Participate in the debate regarding the IMF’s creation or prevention of moral hazard.