《国际货币与金融经济学 Daniels》ch03.pptVIP

Exchange Rate Systems Past to Present Concepts Monetary Order: A set of laws and regulations that establishes the framework within which individuals conduct and settle transactions. Exchange-Rate System: A set of rules that determine the international value of a nation’s currency. Convertibility: The ability to freely exchange a currency for a reserve commodity or reserve currency. The Gold Standard Came into effect in the mid-1870s when most of the major economies unilaterally pegged to gold. Nations fixed the value of their currency relative to gold via a mint parity rate. Established the convertibility of a currency for gold. Gold parity rates determined the exchange rate between currencies. The Gold Standard Pegging the value of each currency to gold, established an exchange rate system by indirectly establishing exchange rates. The mint parity rates could be used to determine the exchange rate. Gold Standard and Exchange Values Pegging the value of each currency to gold established an exchange rate system. The mint parity rates determined the exchange value between two currencies. Gold Standard: Costs and Benefits The gold standard promoted long-run stability of nation’s money stock and long-run stability of real output, prices, and the exchange rate. It can be very costly to maintain a gold standard because of significant resource costs, such as mining and transportation costs. The political costs of maintaining the gold standard became too significant for nations such as the United Kingdom. By 1936 most nations had left the gold standard. The Bretton Woods Agreement The 1944 conference was originally named the “International Monetary and Financial Conference of the United and Associated Nations,” but became better known as the Bretton Woods Conference. This conference established: The International Monetary Fund The International Bank for Reconstruction and Development, or “World Bank” The General Agreement on Tariffs and Trade, or “GATT” The Bretton Wood