1 / 6

IMF: Overview Jeff, Shanna, and Matt

IMF: Overview Jeff, Shanna, and Matt. Conditional Lender to troubled nations 1954: Peru receives first IMF aid package 1960: IMF sets first guidelines to ensure uniformity for all nations 1974: IMF begins to hold nations’ governments more responsible for actions

zoltin
Download Presentation

IMF: Overview Jeff, Shanna, and Matt

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. IMF: Overview Jeff, Shanna, and Matt • Conditional Lender to troubled nations • 1954: Peru receives first IMF aid package • 1960: IMF sets first guidelines to ensure uniformity for all nations • 1974: IMF begins to hold nations’ governments more responsible for actions • 1990’s: IMF forced to deal with new set of world problems

  2. Tequila Crisis • 1994: Overvaluation of Peso leads to currency crisis as foreign investors dump investments in Mexico • Peso falls in value over 50% • IMF forced to bail out Mexico • Mexico recovers, but word is out that IMF bails out deadbeats

  3. Tequila Ripple Effect • Asian economies experience excess lending from foreign investment • Investors nervous about another Tequila Crisis • When Asian economies stumble slightly, investors panic, pulling money and causing a crisis • IMF steps in and helps, but not with the same results as Mexico • Many IMF loans to Asia still outstanding • IMF continues trend of helping deadbeats but IMF will soon pay the price

  4. Argentina: The King of the Deadbeats • Tequila ripple effects Argentina as well • Argentina suffers from high interest rates and a falling stock market as a result of Tequila Crisis • IMF aids in recovery, which was successful for a time, but then…….

  5. Prensa Libre de Argentina • La edicion del Segundo de Diciembre, 2001 KABOOM!!!! December 2001, Argentina defaults on biggest loan in history!!!! $132 billion unpaid!!! Argentina officially the KING of the DEADBEATS!

  6. Present Day • Amount of money owed the IMF today has doubled since 1994 • This trend shows how careless deadbeats have become • IMF should stop bailing out these deadbeat nations • By allowing individual nations to help themselves, IMF can judge how willing they are to reform • Deadbeats will learn best by correcting their own mistakes

More Related