Tải bản đầy đủ - 0 (trang)
PART II. A BRIEF HISTORY OF THE INTERNATIONAL MONETARY SYSTEM

PART II. A BRIEF HISTORY OF THE INTERNATIONAL MONETARY SYSTEM

Tải bản đầy đủ - 0trang

A BRIEF HISTORY

II.



The Classical Gold Standard

(1821-1914)

A.



Major global currencies on gold

standard.

1.

Nations fix the exchange

rate

in terms of a specific

amount

of gold.

11



A BRIEF HISTORY

2.

that

3.



Maintenance involved the

buying and selling of gold at

price.

Disturbances in Price Levels:

Would be offset by the pricespecie*-flow mechanism.



* specie = gold coins

12



A BRIEF HISTORY

a. Price-specie-flow mechanism

adjustments were automatic:

1.) When a balance of payments surplus

led to a gold inflow;

2.) Gold inflow led to higher prices which

reduced surplus;

3.) Gold outflow led to lower

and increased surplus.



prices



13



A BRIEF HISTORY

III.



The Gold Exchange Standard

(1925-1931)

A.



Only U.S. and Britain allowed

to hold gold reserves.



B.

Others could hold both gold,

dollars

or pound reserves.

14



A BRIEF HISTORY

C. Currencies devalued in 1931

- led to trade wars.

D. Bretton Woods

Conference

- called in order to avoid

future protectionist and

destructive economic policies



15



A BRIEF HISTORY

V.The Bretton Woods System (1946-1971)

1. U.S.$ was key currency;

valued at $1 - 1/35 oz. of

gold.

2. All currencies linked to

in a fixed rate system.



that price



16



A BRIEF HISTORY

3.

Exchange rates allowed to

fluctuate

by 1% above or

below initially set

rates.

B. Collapse, 1971

1.

Causes:

a.

U.S. high inflation rate

b.



U.S.$ depreciated sharply.

17



A BRIEF HISTORY

V.Post-Bretton Woods System (1971Present)

A. Smithsonian Agreement, 1971:

US$ devalued to 1/38 oz. of gold.

By 1973: World on a freely floating

exchange rate system.

18



A BRIEF HISTORY

B. OPEC and the Oil Crisis (1973-774)

1.

OPEC raised oil prices four fold;

2.



Exchange rate turmoil resulted;



3.



Caused OPEC nations to earn

large

surplus B-O-P.

19



A BRIEF HISTORY

4. Surpluses recycled to debtor

nations which set up debt

crisis of 1980’s.

C. Dollar Crisis (1977-78)

1. U.S. B-O-P difficulties

2. Result of inconsistent

monetary policy in U.S.

20



A BRIEF HISTORY

3. Dollar value falls as confidence

shrinks.

D. The Rising Dollar (1980-85)

1. U.S. inflation subsides as the Fed

raises interest rates

2. Rising rates attracts global capital to

U.S.

21



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

PART II. A BRIEF HISTORY OF THE INTERNATIONAL MONETARY SYSTEM

Tải bản đầy đủ ngay(0 tr)

×