IMF System

 The purposes of the IMF agreement may be stated succinctly:

(1) To promote international monetary cooperation by establishing as institution for this purpose.

(2) To expand world trade and investment.

(3) To promote relatively stable exchange rates.

(4) To reduce or eliminate the network of government restriction on international payments.

(5) To have a fund available for short term or medium-term loans of currencies needed to facilitate maintenance of stable exchange rates during temporary imbalances, until it became clear that a change in exchange rates was needed.

(6) To shorten and reduce the amplitude of deficits or surpluses in balances of payments.

The keynote of gold standard had been the acceptance of certain unstated but understood rules; the keynote of the IMF system was the acceptance of certain rules established in detail by international agreement.