What role does the International Monetary Fund (IMF) play in the global economy?

The International Monetary Fund (IMF) primarily plays a crucial role in helping maintain monetary stability and offering short-term financial assistance to countries facing economic difficulties. The IMF provides policy advice, financial support, and technical assistance to member countries, particularly those experiencing balance of payments problems, currency crises, or economic instability. By offering short-term loans, the IMF helps countries stabilize their economies, restore growth, and implement necessary reforms.

This support is vital in the context of the global economy, as it encourages stability in international monetary cooperation and facilitates trade by providing countries with the resources they need to address fiscal challenges without resorting to drastic economic measures that might disrupt international financial stability.

In contrast, some options do not align with the IMF's functions. For instance, developing infrastructure projects typically falls under the purview of other organizations like the World Bank. Additionally, while the IMF does influence monetary policy discussions, it does not provide long-term loans or directly regulate international trade agreements, which are generally managed through different international institutions and trade organizations.