Defining IMF Surveillance

Pages114

Page 114

The current arrangements for IMF surveillance were formalized in 1977, following the breakdown of the Bretton Woods system of fixed exchange rates. The IMF was charged with exercising firm surveillance over the exchange rate policies of members in order to oversee the international monetary system and ensure its effective operation. It was recognized from the start that surveillance requires an assessment of both domestic and international economic policies to ensure orderly underlying conditions necessary for financial and economic stability.

To this end, Article IV, Section 3, of the IMF's Articles of Agreement gives the IMF the mandate to oversee each member's efforts to direct its economic and financial policies toward the objective of fostering orderly economic growth with reasonable price stability, to promote orderly underlying economic and financial conditions and a monetary system that...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT