What Is The International Monetary

What Is The International Monetary System?
The international monetary system refers to the institutional arrangements that countries adopt to govern exchange rates
A floating exchange rate system exists when a country allows the foreign exchange market to determine the relative value of a currency
a dirty float exists when a country tries to hold the value of its currency within some range of a reference currency
A fixed exchange rate system exists when countries fix their currencies against each other
European Monetary System (EMS)
A pegged exchange rate system exists when a country fixes the value of its currency relative to a reference currency

What Was The Gold Standard?
The gold standard refers to a system in which countries peg currencies to gold and guarantee their convertibility
the gold standard dates back to ancient times when gold coins were a medium of exchange, unit of account, and store of value
payment for imports was made in gold or silver
later, payment was made in paper currency which was linked to gold at a fixed rate
in the 1880s, most nations followed the gold standard
$1 = 23.22 grains of “fine” (pure) gold (480 grains = 1 ounce)
the gold par value refers to the amount of a currency needed to purchase one ounce of gold ($20.67/Ounce)
Why Did The Gold Standard Make Sense?
The great strength of the gold standard was that it contained a powerful mechanism for achieving balance-of-trade equilibrium - when the income a country’s residents earn from its exports is equal to the money its residents pay for imports
The gold standard worked well from the 1870s until 1914
but, many governments financed their World War I expenditures by printing money and so, created inflation
People lost confidence in the system
demanded gold for their currency putting pressure on countries' gold reserves, and forcing them to suspend gold convertibility
By 1939, the gold standard was dead




What Was The Bretton Woods System?
In 1944, representatives from 44 countries met at Bretton Woods, New Hampshire, to design a new international monetary system that would facilitate postwar economic growth
Under the new agreement
a fixed exchange rate system was established
all currencies were fixed to gold, but only the U.S. dollar was directly convertible to gold
devaluations could not to be used for competitive purposes
a country could not devalue its currency by more than 10% without IMF approval

What Institutions Were Established At Bretton Woods?
The Bretton Woods agreement also established two multinational institutions
The International Monetary Fund (IMF) to maintain order in the international monetary system through a combination of discipline and flexibility
requiring fixed exchange rates stopped competitive devaluations and brought stability to the world trade environment
fixed exchange rates imposed monetary discipline on countries, limiting price inflation
in cases of fundamental disequilibrium, devaluations were permitted
the IMF lent foreign currencies to members during short periods of balance-of-payments deficit, when a rapid tightening of monetary or fiscal policy would hurt domestic employment
What Institutions Were Established At Bretton Woods?
The World Bank to promote general economic development - also called the International Bank for Reconstruction and Development (IBRD)
Countries can borrow from the World Bank in two ways
under the IBRD scheme, money is raised through bond sales in the international capital market
borrowers pay a market rate of interest - the bank's cost of funds plus a margin for expenses.
through the International Development Agency, an arm of the bank created in 1960
IDA loans go only to the poorest countries

Why Did The Fixed Exchange Rate System Collapse?
Bretton Woods worked well until the late 1960s
It collapsed when huge increases in welfare programs and the Vietnam War were financed by increasing the money supply and causing significant inflation
Other countries increased the value of their currencies relative to the U.S. dollar in response to speculation the dollar would be devalued
However, because the system relied on an economically well managed U.S., when the U.S. began to print money, run high trade deficits, and experience high inflation, the system was strained to the breaking point – the U.S. dollar came under speculative attack


What Was The Jamaica Agreement?
A new exchange rate system was established in 1976 at a meeting in Jamaica
The rules that were agreed on then, are still in place today
Under the Jamaican agreement
floating rates were declared acceptable
gold was abandoned as a reserve asset
total annual IMF quotas - the amount member countries contribute to the IMF - were increased to $41 billion – today they are about $300 billion


What Has Happened To Exchange Rates Since 1973?
Since 1973, exchange rates have been more volatile and less predictable than they were between 1945 and 1973 because of
the 1971 oil crisis
the loss of confidence in the dollar after U.S. inflation in 1977-78
the 1979 oil crisis
the rise in the dollar between 1980 and 1985
the partial collapse of the European Monetary System in 1992
the 1997 Asian currency crisis
What Has Happened To Exchange Rates Since 1973?
Major Currencies Dollar Index, 1973-2008


Which Is Better – Fixed Rates Or Floating Rates?
Floating exchange rates provide
Monetary policy autonomy
removing the obligation to maintain exchange rate parity restores monetary control to a government
Automatic trade balance adjustments
under Bretton Woods, if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy, the IMF would have to agree to a currency devaluation
Which Is Better – Fixed Rates Or Floating Rates?
But, a fixed exchange rate system
Provides monetary discipline
ensures that governments do not expand their money supplies at inflationary rates
Minimizes speculation
causes uncertainty
Reduces uncertainty
promotes growth of international trade and investment
Who Is Right?
There is no real agreement as to which system is better
A fixed exchange rate regime modeled along the lines of the Bretton Woods system will not work
But a different kind of fixed exchange rate system might be more enduring and might foster the kind of stability that would facilitate more rapid growth in international trade and investment
What Type of Exchange Rate System Is In Practice Today?
Various exchange rate regimes are followed today
14% of IMF members follow a free float policy
28% of IMF members follow a managed float system
22% of IMF members have no legal tender of their own
the remaining countries use less flexible systems such as pegged arrangements, or adjustable pegs

What Type of Exchange Rate System Is In Practice Today?
Exchange Rate Policies, IMF Members, 2006

What Is A Pegged Rate System?
A country following a pegged exchange rate system, pegs the value of its currency to that of another major currency
popular among the world’s smaller nations
adopting a pegged exchange rate regime can moderate inflationary pressures in a country
What Is A Currency Board?
Countries using a currency board commit to converting their domestic currency on demand into another currency at a fixed exchange rate
the currency board holds reserves of foreign currency equal at the fixed exchange rate to at least 100% of the domestic currency issued
the currency board can issue additional domestic notes and coins only when there are foreign exchange reserves to back them

What Is The Role Of The IMF Today?
Today, the IMF focuses on lending money to countries in financial crisis
A currency crisis occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency, or forces authorities to expend large volumes of international currency reserves and sharply increase interest rates in order to defend prevailing exchange rates
A banking crisis refers to a situation in which a loss of confidence in the banking system leads to a run on the banks, as individuals and companies withdraw their deposits
A foreign debt crisis is a situation in which a country cannot service its foreign debt obligations, whether private sector or government debt


What Was The Asian Currency Crisis?
The 1997 Southeast Asian financial crisis was caused by events that took place in the previous decade including
An investment boom - fueled by huge increases in exports
Excess capacity - investments were based on projections of future demand conditions
High debt - investments were supported by dollar-based debts
Expanding imports – caused current account deficits
What Was The Asian Currency Crisis?
By mid-1997, several key Thai financial institutions were on the verge of default
speculation against the baht
Thailand abandoned the baht peg and allowed the currency to float
The IMF provided a $17 billion bailout loan package
required higher taxes, public spending cuts, privatization of state-owned businesses, and higher interest rates
What Was The Asian Currency Crisis?
Speculation caused other Asian currencies including the Malaysian Ringgit, the Indonesian Rupaih and the Singapore Dollar to fall
These devaluations were mainly driven by
excess investment, high borrowings, much of it in dollar denominated debt, and a deteriorating balance of payments position
The IMF provided a $37 billion aid package for Indonesia
required public spending cuts, closure of troubled banks, a balanced budget, and an end to crony capitalism
The IMF provided a $55 billion aid package to South Korea
required a more open banking system and economy, and restraint by chaebol

Results (English) 1:

What Is The International Monetary System?The international monetary system refers to the institutional arrangements that countries adopt to govern exchange ratesA floating exchange rate system exists when a country allows the foreign exchange market to determine the relative value of a currency a dirty float exists when a country tries to hold the value of its currency within some range of a reference currencyA fixed exchange rate system exists when countries fix their currencies against each otherEuropean Monetary System (EMS)A pegged exchange rate system exists when a country fixes the value of its currency relative to a reference currency What Was The Gold Standard?The gold standard refers to a system in which countries peg currencies to gold and guarantee their convertibilitythe gold standard dates back to ancient times when gold coins were a medium of exchange, unit of account, and store of valuepayment for imports was made in gold or silverlater, payment was made in paper currency which was linked to gold at a fixed rate in the 1880s, most nations followed the gold standard$1 = 23.22 grains of "fine" (pure) gold (480 grains = 1 ounce)the gold par value refers to the amount of a currency needed to purchase one ounce of gold ($20.67/Ounce)Why Did The Gold Standard Make Sense? The great strength of the gold standard was that it contained a powerful mechanism for achieving balance-of-trade equilibrium-when the income a country residents earn from its exports is equal to the money its residents pay for importsThe gold standard worked well from the 1870s until 1914 but, many governments financed their World War ii expenditures by printing money and so, created inflationPeople lost confidence in the system demanded gold for their currency putting pressure on countries ' gold reserves, and forcing them to suspend gold convertibilityBy 1939, the gold standard was deadWhat Was The Bretton Woods System?In 1944, representatives from 44 countries met at Bretton Woods, New Hampshire, to design a new international monetary system that would facilitate postwar economic growth Under the new agreement a fixed exchange rate system was establishedall currencies were fixed to gold, but only the U.S. dollar was directly convertible to golddevaluations could not to be used for competitive purposesa country could not devalue its currency by more than 10% without IMF approvalWhat Institutions Were Established At Bretton Woods?The Bretton Woods agreement also established two multinational institutionsThe International Monetary Fund (IMF) to maintain order in the international monetary system through a combination of discipline and flexibilityrequiring fixed exchange rates stopped competitive devaluations and brought stability to the world trade environment fixed exchange rates imposed monetary discipline on countries, limiting price inflationin cases of fundamental disequilibrium, devaluations were permitted the IMF lent foreign currencies to members during short periods of balance-of-payments deficit, when a rapid tightening of monetary or fiscal policy would hurt domestic employmentWhat Institutions Were Established At Bretton Woods?The World Bank to promote general economic development-also called the International Bank for Reconstruction and Development (IBRD)Countries can borrow from the World Bank in two ways under the IBRD scheme, money is raised through bond sales in the international capital marketborrowers pay a market rate of interest-the banks cost of funds plus a margin for expenses. through the International Development Agency, an arm of the bank created in 1960IDA loans go only to the poorest countriesWhy Did The Fixed Exchange Rate System Collapse?Bretton Woods worked well until the late 1960sIt collapsed when huge increases in welfare programs and the Vietnam War were financed by increasing the money supply and causing significant inflation Other countries increased the value of their currencies relative to the U.S. dollar in response to speculation the dollar would be devaluedHowever, because the system relied on an economically well managed U.s. when the U.S. began to print money, run high trade deficits, and experience high inflation, the system was strained to the breaking point – the U.S. dollar came under speculative attackWhat Was The Jamaica Agreement?A new exchange rate system was established in 1976 at a meeting in Jamaica The rules that were agreed on then, are still in place todayUnder the Jamaican agreementfloating rates were declared acceptablegold was abandoned as a reserve assettotal annual IMF quotas-the amount member countries contribute to the IMF-were increased to $41 billion – today they are about $300 billion What Has Happened To Exchange Rates Since 1973?Since 1973, exchange rates have been more volatile and less predictable than they were between 1945 and 1973 because ofthe 1971 oil crisisthe loss of confidence in the dollar after U.S. inflation in 1977-78the 1979 oil crisisthe rise in the dollar between 1980 and 1985the partial collapse of the European Monetary System in 1992the 1997 Asian currency crisisWhat Has Happened To Exchange Rates Since 1973?Major Currencies Dollar Index, 1973-2008Which Is Better – Fixed Rates Or Floating Rates?Floating exchange rates provideMonetary policy autonomyremoving the obligation to maintain exchange rate parity restores monetary control to a governmentAutomatic trade balance adjustmentsunder Bretton Woods, if a country developed a permanent deficit in its balance of trade that could not be corrected by domestic policy, the IMF would have to agree to a currency devaluationWhich Is Better – Fixed Rates Or Floating Rates?But, a fixed exchange rate system Provides monetary disciplineensures that governments do not expand their money supplies at inflationary ratesMinimizes speculationcauses uncertaintyReduces uncertaintypromotes growth of international trade and investmentWho Is Right?There is no real agreement as to which system is better A fixed exchange rate regime modeled along the lines of the Bretton Woods system will not workBut a different kind of fixed exchange rate system might be more enduring and might foster the kind of stability that would facilitate more rapid growth in international trade and investmentWhat Type of Exchange Rate System Is In Practice Today?Various exchange rate regimes are followed today14% of IMF members follow a free float policy28% of IMF members follow a managed float system22% of IMF members have no legal tender of their ownthe remaining countries use less flexible systems such as pegged arrangements, or adjustable pegs What Type of Exchange Rate System Is In Practice Today?Exchange Rate Policies, IMF Members, 2006What Is A Pegged Rate System?A country following a pegged exchange rate system, pegs the value of its currency to that of another major currencypopular among the worlds smaller nations adopting a pegged exchange rate regime can moderate inflationary pressures in a countryWhat Is A Currency Board?Countries using a currency board commit to converting their domestic currency on demand into another currency at a fixed exchange ratethe currency board holds reserves of foreign currency equal at the fixed exchange rate to at least 100% of the domestic currency issued the currency board can issue additional domestic notes and coins only when there are foreign exchange reserves to back themWhat Is The Role Of The IMF Today?Today, the IMF focuses on lending money to countries in financial crisisA currency crisis occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency, or forces authorities to expend large volumes of international currency reserves and sharply increase interest rates in order to defend prevailing exchange ratesA banking crisis refers to a situation in which a loss of confidence in the banking system leads to a run on the banks, as individuals and companies withdraw their depositsA foreign debt crisis is a situation in which a country cannot service its foreign debt obligations, whether private sector or government debtWhat Was The Asian Currency Crisis?The 1997 Southeast Asian financial crisis was caused by events that took place in the previous decade includingAn investment boom-fueled by huge increases in exports Excess capacity-investments were based on projections of future demand conditions High debt-investments were supported by dollar-based debtsExpanding imports – caused current account deficitsWhat Was The Asian Currency Crisis?By mid-1997, several key Thai financial institutions were on the verge of defaultspeculation against the bahtThailand abandoned the baht peg and allowed the currency to floatThe IMF provided a $17 billion bailout loan package required higher taxes, public spending cuts, privatization of state-owned businesses, and higher interest ratesWhat Was The Asian Currency Crisis?Speculation caused other Asian currencies including the Malaysian Ringgit, the Indonesian Rupaih and the Singapore Dollar to fallThese devaluations were mainly driven by excess investment, high borrowings, much of it in dollar denominated debt, and a deteriorating balance of payments positionThe IMF provided a $37 billion aid package for Indonesiarequired public spending cuts, closure of troubled banks, a balanced budget, and an end to crony capitalismThe IMF provided a $55 billion aid package to South Korearequired a more open banking system and economy, and restraint by chaebol

Results (English) 3:

什么是国际货币制度？
国际货币体系的制度安排，是指国家采取管理汇率
浮动汇率制度的存在，当一国允许外汇市场决定汇率
相对价值一个肮脏的浮动时存在的国家试图在一些基准货币范围保持其货币价值
固定汇率制度时存在的国家将本国货币对
欧洲货币体系（EMS）
盯住美元的汇率制度的存在，当一国将其货币价值相对于参考货币

黄金标准是什么？
金本位制是指一个系统中，国家将货币兑换黄金和保证他们
金本位的历史可以追溯到古代的金币是交换媒介，计算单位，与进口价值
付款的商店是在金或银
后，支付货币是在19世纪80年代固定汇率
黄金联系了，大多数国家的黄金标准
1美元= 23.22粒“精”（纯）金（480粒= 1盎司）
黄金平价是指一种货币的需要购买一盎司的黄金数量（20.67美元/盎司）
为什么金标准的有意义吗？
黄金标准的伟大力量，它包含了实现贸易平衡-平衡的收入时，一国居民从出口赚钱等于其居民支付进口
黄金标准工作从1870年到1914
但强大的机制，许多国家的政府资助他们的第一次世界大战的支出通过印刷钞票等，产生了通胀
人失去了在系统
信心要为自己的货币施加压力，国家的黄金储备黄金，并迫使他们1939中止了黄金的可兑换性
，黄金标准是死的




布雷顿森林体系是什么？
1944，来自44个国家的代表在美国新罕布什尔州布雷顿森林，设计一个新的国际货币体系，将有助于战后经济增长
新协议
固定汇率制度下成立
所有货币被固定到金，但只有美元直接兑换黄金
贬值可能不被用于竞争目的
一个国家不可能让其货币贬值的10%没有国际货币基金组织批准

什么机构在布雷顿森林成立？
布雷顿森林协议还建立了两个跨国机构
国际货币基金组织（IMF）维持在国际货币秩序相结合的纪律性和灵活性
需要固定汇率不再竞争性贬值和稳定了世界贸易环境
固定汇率的国家征收的货币约束，限制在基本不平衡情况下价格的通胀
，货币贬值被允许
IMF成员借给外国货币在短期的国际收支逆差时，迅速收紧货币和财政政策将损害国内就业
什么机构在布雷顿森林成立？
世界银行促进整体经济的发展又称为国际复兴开发银行（IBRD）
国家可以借由世界银行在两个方面
国际复兴开发银行计划下，钱是通过在国际资本
借款人支付市场利率，银行的资金成本加上保证金费用。
通过国际发展机构，在1960
IDA贷款造成了银行臂只在贫穷的国家

为什么固定汇率制度崩溃？
布雷顿森林体系运作良好，直到20世纪60年代后期
它倒塌时在福利计划的大量增加和越南战争是通过增加货币供应量，造成严重的通货膨胀
资助其他国家增加了本国货币的价值在响应猜测，美元会贬值
然而美元相对，因为系统依赖于经济管理良好的美国，当美国开始印钱，运行高贸易赤字，和经验的高通货膨胀率，系统已经几近破裂–的美国美元受到投机性攻击


牙买加协议是什么？
新汇率制度建立于1976在牙买加
规则，同意再开会，还是在今天
牙买加协议
浮动利率下被正式接受
黄金不再是储备资产
年总的IMF配额的成员国对国际货币基金组织增加到41000000000美元–今天他们是约300000000000美元


发生汇率自1973？
自1973以来，汇率比分别是1945和1973之间由于
1971次石油危机
失去对美元的信心，在美国更不稳定和更不可预测的通货膨胀是在1977-78
1979次石油危机
1980和1985
欧洲货币体系的局部坍塌1992
1997的亚洲货币危机以来1973
汇率发生了什么在美元升值？
主要货币的美元指数，1973-2008


哪个更好–固定利率或浮动利率？
浮动汇率提供
货币政策的自主性
除义务保持汇率平价恢复货币控制在政府
自动贸易平衡的调整
在布雷顿森林体系下，如果一个国家发展永久的赤字在其贸易平衡，不能由国内政策的修正，IMF同意货币贬值
哪个更好–固定利率或浮动率？
但，固定汇率制度
提供货币纪律
确保政府不扩大货币供应在通胀率
减少投机
引起的不确定性
降低不确定性
促进国际贸易和投资增长
谁是正确的？
没有真正的协议，它是更好的
系统固定汇率制度的建模以及布雷顿森林体系的线将不工作
而是一种不同的固定汇率制度可能更持久和稳定，促进可能促进更快速的国际贸易和投资
什么类型的汇率制度是在实践中增长的今天呢？
各种汇率制度是遵循今天
国际货币基金组织成员14%遵循自由浮动的政策
28%的国际货币基金组织成员遵循有管理的浮动汇率制度
22%的国际货币基金组织成员有自己的
其余国家没有法定货币使用不灵活的系统如钉住安排，或可调整的钉

什么类型的汇率制度在实践中是今天？
汇率政策，国际货币基金组织的成员国，2006

盯住美元的汇率制度是什么？
在钉住汇率制度的国家，将其货币价值的另一个主要货币
风行世界的小国家中
采用固定汇率制度可以缓和通胀压力在一个国家的货币发行局
是什么？
国家货币委员会承诺将使用本国货币的需求成另一种货币以固定汇率
货币发行局持有外汇储备的固定汇率相等，在至少100%的国内货币发行
货币发行局可以发行更多的国内纸币和硬币，只有当有外汇储备他们

今天，国际货币基金组织的作用是什么？
今天，国际货币基金组织集中在金融危机
货币危机发生时，投机性攻击对货币价值的大幅贬值货币的交换价值的结果的国家贷款，或迫使当局耗费大量的国际货币储备和大幅提高利率以捍卫汇率的变动
银行业危机是指在一定的情况下，失去对银行体系的信心会导致银行挤兑，为个人和公司撤回他们的存款
外债危机中，一个国家不能偿还外债的情况下，无论是私人还是政府债务


的亚洲货币危机是什么？
1997东南亚金融危机是由发生在过去的十年里包括
投资激增的出口大幅增加了
事件引起的产能过剩的投资是基于对未来需求条件
高债务投资是通过债务
扩大进口–导致经常账户赤字的
亚洲货币危机是美元的支持？
由一九九七年中，几个关键的泰国金融机构对违约
投机攻击泰铢
边缘泰国放弃泰铢PEG和允许人民币浮动
国际货币基金组织提供的17000000000美元救助贷款计划
要求更高的税收，削减公共开支，国有企业私有化，和高利率的
亚洲货币危机是什么？
投机造成的其他亚洲货币包括马来西亚林吉特，印尼和新加坡rupaih美元下跌，
这些货币贬值的原因主要是由
超额投资，高借贷，以美元计价的债务的话，和日益恶化的国际收支平衡
国际货币基金组织提供了37000000000美元的援助印度尼西亚
要求削减公共开支，陷入困境的银行关闭，平衡预算，并结束裙带资本主义
IMF韩国提供了55000000000美元的援助
要求更开放的金融系统和经济，和约束的


财阀