Date of Award/Publication

11-2013

Document Type

Thesis

Degree Name

M.S. in International Studies

Department

International Studies

Abstract

Since its inception in 1945, the goal of the International Monetary Fund (IMF) has been to "prevent crises in the [international] system by encouraging countries to adopt sound economic policies." In recent decades, the Fund's focal point has been on the liberalization, or opening, of financial markets to advance economic development. Previously known as the "A-plus student of the IMF", Argentina provides valuable insight into the IMF's policies and need for reorganization measures by raising the question of whether the IMF's liberalization policies are fostering or hindering economic prosperity. The IMP is pushing capital market liberalization forward even though there is no evidence that economic growth is significantly affected by it. Moreover, since capital market liberalization has contributed to instability, such as in Argentina, the IMF needs to refocus its efforts by assisting countries through Keynesian expansionary economic measures, a proven method for lessening the severity and duration of financial crises.

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