Introduction Throughout history, the world economy has been significantly influenced by financial institutions and rules in the international monetary system, in ensuring financial stability. In particular, these institutions have played major roles, during financial crises, witnessed in recent years. Even though there are numerous financial institutions, it has been argued that the International Monetary Fund is one of the most influential organs, with immense impact on the world economy (Peet 2009, p. 56). This can be proved by the manner in which it responds during critical financial moments, like during the Global Financial Crisis and the current Euro zone stalemate. Since its establishment in 1944, at a United Nations conference held in Bretton Woods, IMF has initiated a wide-range of reforms in the global financial market. Importantly, only forty-four governments were represented as they agreed to develop a framework, aimed at enhancing economic cooperation among members. This move was mainly triggered by devaluation errors, which had resulted into the Great Depression that was witnessed in 1930s (Peet 2009, p. 71). In addition, IMF stepped-up organized exchange arrangement, which was essential in promoting stability among its members. This further sought to eliminate competitive exchange depression, which had dominated the world at the beginning of the 20 th century. Moreover, IMF wanted to eliminate restrictions within the international market, which would hamper expansion of trade around the world. To achieve this, members agreed on the establishment of a multilateral payment structure that streamlined transactions among member states. It is worth noting that these reforms aimed at stabilizing the international monetary system, which remains crucial in shaping the world economy. These initiatives have also been applauded for promoting economic growth, reduction of poverty and improvement of people’s living standards around the world (Peet 2009, p. 67). Based on ever-changing financial challenges, IMF has considered reviewing its mandate in responding to global financial crises. This essay focuses on how the role of the International Monetary Fund has changed since its establishment in mid 1940s. More importantly, the analysis will explore some of the factors, which have contributed to the restructuring of the institution, on the basis of the world financial issues. Based on this, the paper will also cover the body’s response to recent economic crises, which have had significant implications. Lastly, the essay will discuss the future of IMF, in terms of its functions as it enhances the stability of the international monetary system. How the role of the IMF has changed since 1945 In understanding the role of the International Monetary Fund since its establishment, a lot of attention has always been put on how its role has continued to evolve. In fact, some people argue that what IMF does today, differs completely from what it used to do immediately after its formation. How has this evolution occurred? Are there factors, which have contributed to the change of the body’s original roles? These are some of the questions addressed in this segment of the analysis. For better understanding, a chronological performance of the institution will be reviewed, in order to create a link between the past and the current status, of one of the most influential financial organs in the world today. IMF after Bretton Woods According to the history of the International Monetary Fund, it is believed that Bretton Woods’ agreement, which was signed in the 19