Kinesis is to contribute to stable and high global growth, while fostering price and financial stability is often used interchangeably with terms such as “international monetary and financial system” and “international financial architecture.”
Since the nomenclature involves de jure/de facto jurisdiction, obligations and oversight concerning sovereign nations and multilateral bodies, it is important to be precise and specific.
The IMS comprises the set of official arrangements that regulate key dimensions of the balance of payments (IMF, 2009c; 2010a). It consists of four elements: exchange arrangements and exchange rates; international payments and transfers relating to current international transactions; international capital movements; and international reserves.
The essential purpose of the IMS is to facilitate the exchange of goods, services and capital among countries. As outlined in the Articles of Agreement that established it, the IMF is required to exercise oversight of the IMS.
The obligations of member countries are to direct economic and financial policies and to foster underlying economic and financial conditions desired to achieve orderly economic growth with reasonable price stability (“domestic stability”), avoid manipulation of the exchange rates and to follow compatible exchange rate policies.
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