"At the IMF Center": Exhibit Worksheet—Group Focus Questions

Group 1
The IMF: A Changing Role Over Time

• Materials: Image: Exhibit Area 6.3-Street vendor in Rio de Janeiro
  
• Cartoon used: Exhibit Area 5.1-"International Monetary System"
  
• Exhibit Areas of major interest: Exhibit Area 2 (creation of IMF); Exhibit Area 4 (creation of SDRs and new monetary system, decolonization); Exhibit Area 5 (collapse of Bretton Woods and search for new role for IMF); Exhibit Area 6 (IMF, developing countries, and debt restructuring)
  

Printable Exhibit Area 6.3-Street vendor in Rio de Janeiro Credits	Printable Exhibit Area 5.1-"International Monetary System" Credits

Brief Explanation
Since its inception in 1944, the IMF has had to redefine its mission in light of the change in global economic circumstances. It now fosters economic cooperation, encourages international trade, and helps strengthen members' economies.

Focus Questions

1. How did various global political and economic crises create a cycle of instability that eventually gave rise to the creation of the International Monetary Fund and the World Bank?
   
   
2. What were the intended goals in creating an international monetary system from both an economic and political standpoint?
   
   
3. What role did the U.S. dollar play in the political and economic changes taking place during the post-World War II international expansion?
   
   
4. How did dependence on the U.S. dollar lead to financial crisis and the need for international economic reform?
   
   
5. With the collapse of the Bretton Wood system, what role did the International Monetary Fund play in the creation of a new system of financial stability?
   
   
6. How has the international debt crisis served to demonstrate the current role of the International Monetary Fund in the increasingly global economy?
   
   

Group 2
Politics and Economics: The United States and the International Economy

• Image used: Exhibit Area 5.2- as shortage
  
• Cartoon used: Exhibit Area 3.2-"Who's Got The Gold?"/Exhibit Area 4.6-Sinking U.S. ship
  
• Exhibit Areas of major interest: Exhibit Area 2 (WWI reparations, global crisis and search for political stability); Exhibit Area 3 (U.S. dollar fuels world economies, Marshall Plan fosters economic recovery); Exhibit Area 4 (gold reserves and the US dollars, Nixon and the gold standard); Exhibit Area 5 (U.S. and OPEC, inflation and recession)
  

Printable Exhibit Area 5.2- as shortage Credits	Printable Exhibit Area 3.2-"Who's Got The Gold?" Credits	Printable Exhibit Area 4.6-Sinking U.S. ship Credits

Brief Explanation
By the end of World War II, the spirit of isolation had disappeared. Following World War I, that spirit had prevented the United States-despite its military and economic power-from accepting a world leadership role. Beginning in 1944, the United States put its weight as a superpower behind the initiatives that have shaped the modern world-the United Nations, the World Bank, the International Monetary Fund, the World Trade Organization, and the North Atlantic Treaty Organization. On occasion, U.S. domestic policies have run counter to the aims of these organizations (most notably in the early 1970s when U.S. inflationary policies brought about the suspension of dollar/gold convertibility and forced a reorganization of the IMF). On balance, U.S. support for these institutions since World War II has been instrumental in creating the longest period of economic growth and prosperity in history.

Focus Questions

1. What were some of the connections between the economic conditions in the United States and the crises that led to the creation of the International Monetary Fund?
   
   
2. How did the United States find itself in a position to help in the creation of global economic stability following World War II?
   
   
3. What role did the U.S. dollar play in the political and economic changes taking place during the post-World War II international expansion?
   
   
4. How did U.S. economic conditions in the late 1960s and early 1970s, and actions taken to address such conditions, lead to a dramatic and fundamental change in the international financial system?
   
   
5. How did the oil crises of the 1970s demonstrate the inextricable link between the United States economy and world affairs?
   
   

Group 3
Conflict and Cooperation: The Economic Consequences of International Interaction

• Image used: Exhibit Area 3.1-Elephant in Hamburg
  
• Cartoon(s) used: Exhibit Area 6.1-IOUs/Exhibit Area 6.3-Lifeline of debt
  
• Exhibit Areas of major interest: Exhibit Area 2 (WWI reparations and global crisis); Exhibit Area 3 (destruction of WWII and the Marshall Plan); Exhibit Area 5 (OPEC and the oil crisis, inflation and the reaction to the falling U.S. dollar, international recession); Exhibit Area 6 (debt problem and restructuring, growth of Foreign Exchange markets
  

Brief Explanation
Conflict is rarely an ally of economic prosperity. From the end of World War I through the oil crises of the 1970s, we have not been short on economic hardship brought about by bickering nations and economic organizations. During the same time period, the world has seen a dramatic increase in global cooperation and, with it, growing economic stability and prosperity, largely due to cooperation within the membership of the IMF. That cooperation as seen by international intervention in rescuing the falling dollar, the formation of Regional Trade Blocs, and the growth of the Foreign Exchange market, has been as evident as the conflict. Both offer dramatic lessons for managing conflict and building global economic communication.

Focus Questions

1. Describe how international conflicts contributed to the series of global crises that gave rise to the creation of the International Monetary Fund.
   
   
2. In what ways would the creation of an international financial system such as the IMF promote international economic and political cooperation and stability?
   
   
3. How did the cooperation among nations following World War II lead to the rebuilding of Europe and heightened sense of security and prosperity?
   
   
4. Identify various conflicts between and among nations that have threatened or created disruptions in economic stability.
   
   
5. Why and in what ways are proponents of developing countries calling for the cooperation of industrial nations in alleviating the tremendous debt of poor nations?
   
   
6. How has the proliferation of regional trade blocs demonstrated worldwide recognition of the benefits of international economic cooperation as a means to greater economic prosperity?
   

Money Matters Curriculum Table of Contents

Money Matters