WORLD BANK & IMF

DENNIS
SHRIKANT
 Bretton Woods Conference
• 5 Main organizations were formed.
• USA became a super power only after this
event .
• The vital one was the World Bank.
• The international clearing union was rejected
and The international monetary fund was
established.
“HISTORY REPEATS ITSELF
BUT THIS TIME
ITS MUCH WORSE”
 1775
• American revolution against king GEORGE III
of BRITAN.
• Use of independent currency in american
colonies was banned.
• The people were forced to borrow money
from THE CENTRAL BANK OF ENGLAND.
• As a result of this revolution America got its
independence.
 WHAT IS A CENTRAL BANK
• It is the one that prints a nations currency and
it has 2 specific powers
1)Interest rates
2)money supply
The central bank gives the money to the
government as loans
By increasing or decreasing the interest rate it
controls the value of the money.
• The panic of 1907 lead by J.P.MORGAN.
• In order to avoid such panic further the
FEDERAL RESERVE SYSTEM was formulated.
• All the rules were written by the bankers and
not the law makers.
• In 1913 woodrow wilson became the
president with the help of bankers.
WILSON REGRETS
• 1914-1919 the FED increased the money
supply by 100%.
• 1920 panic reinitiated by calling back the
money they have lent.
• Over 54 small banks collapse including the
PHILADELPHIA BANK.
• 1921-1929 62% increase in the money
supply.
 THE MARGIN LOAN
• 10/90 loan system in the stock market.
• Most welcome saviour for the people many
made profits.
BUT……….
• It had 1 condition it can be called back at any
time if not paid the shares are taken away
along with interest.
THE GREAT
AMERICAN
DEPRESSION
REMOVAL OF GOLD STANDARD
RESULT OF REMOVAL
 WORLD BANK
• Funds essential infrastructural requirement,
globally.
• Headquartered in Washington D.C.
• Outcome of the Bretton Woods Conference,
held in 1944.
• France was the first country to receive World
Bank aid.
 IMF
• FORMED IN 1944
• Head quartered at WASHINGTON D.C
• Oversee exchange rates and to provide
financial aids and advice to its member
countries
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