The International Monetary Fund (IMF), as said in their official website, claims to promote macroeconomic stability and to reduce poverty by giving aid to country members, especially developing nations, facing economic difficulties. It does this by providing advice on jobs and growth, debt sustainability, and financial systems, and work on fiscal policy and employment amongst many. .
In its annual report for 2013, the IMF presents the wide-array of programs they offer and also addressed the problem of how in a globalized world, lagging policy momentum can affect all. This is precisely why they help the low-income countries "strike the appropriate balance between debt sustainability and space to borrow for productive investments to support growth. " It even addressed some of the arguments posed before such as their "one-size-fits-all " approach for all countries. The IMF said that its "fiscal advice to member countries, including those with IMF-supported programs, has been continually reviewed and adjusted as needed. "The IMF claims that they look out for each country's best interests and adjust their advice and programs accordingly. But just how effective are the Fund's programs to promote good economic outcomes in the recipient countries?.
Focusing on debt sustainability, the IMF lends money to debtor countries so they could pay the interest on their outstanding debts (Meltzer, 205). This program of the IMF reduces the problem of the country; it decreases the probability of a country falling in more debt by lending the country money to pay for its current debt, which could be at a much lower interest rate. Even if the country still continues to be in debt, as this time they'll be in debt to the IMF, at least the IMF lessened the country's burden of having to pay a larger amount of money.
With regard to currency crises, the IMF can affect a country's currency crises in a number of ways.