Why & when was IMF Created?

From 1929 to 1939 the world faced a major economic crisis. It was the Great Depression during which several economies were troubled; Stock Markets Crashed, Trade Declined, & Banks Failed. American economy faced the worst, its Industrial Production declined by 47% & GDP decreased by 30%, whereas poverty increased by 20%. After the great depression the world experienced 2nd world war which further ruined the economies. These 2 events caused sleek decline in international trade and rise in inflation.

At that time, the subtle choice for world leaders was to settle down rivalries and ensure economic cooperation at the international level. To stabilize economy every country had to make profound changes in its economic policy. After 2 years of negotiations, they agreed upon common terms. In 1944, delegates from 44 nations met at the Bretton woods, New Hampshire, America. This meeting is famous as Bretton Woods Conference. In this conference one of the developments was setting the standard for printing Currency. They agreed to print currencies against the US Dollar Reserves, while only US will print its currency against the Gold Reserves. Previously the standard for printing money was Gold Reserves in several countries.

Hence, the world had a new economic system which was to be implemented soon. For the effective implementation of the Bretton woods system, an agreement was signed for the creation of World Bank and International Monetary Fund. That's how IMF was created.