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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

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IMF: Overview Jeff, Shanna, and Matt

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  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

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