Two features of the IMF helped build in limited flexibility: IMF lending facilities and adjustable parities.

Question

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IMF lending facilities offer loans to member countries that are conditional upon implementing specific economic policies, which can limit their flexibility in managing their own economies. Adjustable parities allow member countries to adjust the value of their currency, but this can also lead to reduced flexibility as it requires coordination with other member countries and may lead to trade tensions.

Two Features of the IMF Helped Build in Limited Flexibility