2008 global financial crisis and the role of The International Monetary Fund

IMF has been created to make international cooperation on financial matters stronger, for providing stable growth of foreign trade and for solving the problems of balance of payment. However, the role of IMF changed because of recent events occurred in the world economies. Fundamentally, IMF made policİes in order to solve problems of balance of payment till 1980s, expanded its effectiveness much and more by controlling the applications called structural adjustment programs after 1980s., undertook the role of an internationaIlender of last resort on recent crises occurred because of globalization trend and saw itself as an international lender of last resort during this financial crisis.The current global financial crisis, which began with the downturn of the U.S. subprime housing market in 2007, is testing the ability of the International Monetary Fund (IMF), in its role as the central international institution for oversight of the global monetary system. Though the IMF is unlikely to lend to the developed countries most affected by the crisis and must compete with other international financial institutions1 as a source of ideas and global macroeconomic policy coordination, the spillover effects of the crisis on emerging and less-developed economies gives the IMF an opportunity to reassert its role in the international economy on two key dimensions of the global financial crisis: (1) immediate crisis management and (2) long-term systemic reform of the international financial system. This thesis investigates foregoing changes occurring in the IMF and its new role assumed in the world economy.Key Words1.2008 Global Financial Crisis,2.Subprime Mortgage Credits,3.International Monetary Fund (IMF),4.IMF Programs,5.Reform.