An ideal IMF: what would it do? So, if we were to create the IMF from scratch today, we would want it to have as its ultimate objective the promotion of a well-functioning, market-based international financial system. But how should we turn that objective into concrete action? What would this ideal IMF actually do? How would it operate?
Supply liquidity to ensure financial market stability  Second, the central bank should supply liquidity flexibly in response to the financial market turmoil which may arise in the course of restructuring. It is quite common for the financial market to become destabilized during the process of structural adjustment due to high credit risks and reduced trust among market participants.