- The International Monetary Fund(IMF) has warned the United States and China that higher bilateral tariffs are unlikely to reduce aggregate trade imbalances as they mainly divert trade to other countries.
- Instead,they are likely to harm both domestic and global growth by affecting business confidence and investment and disrupting global supply chains.
- The IMF has also cautioned countries against focusing on weakening a country’s currency exchange rate.It said that this would hurt the functioning of the international monetary system and will affect all countries.
- The International Monetary Fund (IMF) is an international organization headquartered in Washington,US.It consists of 189 countries.It was formed in 1944 at the Bretton Woods Conference.
- IMF has been established to (a)foster global monetary cooperation (b)secure financial stability, (c)facilitate international trade (d)promote high employment (e) sustainable economic growth and (f)reduce poverty around the world.
