Using relevant sources, identify and elaborate on the role of the IMF within the global political economy.

Policy Issues in the Global Economy
Question One: The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., which works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” Formed in 1944 at the Bretton Woods Conference it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now has 189 member states and plays a central role in the management of balance of payments difficulties and international financial crises. a- Using relevant sources, identify and elaborate on the role of the IMF within the global political economy. How is policy within the IMF determined? [30 Marks] b- Identify and explain in detail the ideological and political objections that are commonly directed towards the IMF. Two what extent have these issues been addressed by recent reforms? [30 Marks] Question Two: Provide a clear explanations for the issues below (a) Providing protection to allow the exploitation of monopoly/monopsony power is viewed as a first-best policy for the country concerned. Similarly, imposing direct tariff with the purpose of restricting externalities involved in the trade process can be seen as a first- best policy. Do you agree with this statement? Provide an explanation. [20 Marks] (b) What arguments can be considered in favour of trade intervention? Evaluate each argument and decide what would be a first-best form of intervention. [20 Marks] Further Notes – You should make intensive use of the course text AND journal articles, case studies, and peer-reviewed academic source materials. – Use exhibits and appendices to provide succinct, relevant and clear information. Focus on the critical issues and the holistic framework rather than minor detail