当代全球商务第七版配套课件Chap10.pptVIP

Global Business Today 7e by Charles W.L. Hill Chapter 10 The International Monetary System Introduction Question: What is the international monetary system? Answer: The international monetary system refers to the institutional arrangements that govern exchange rates recall that the foreign exchange market is the primary institution for determining exchange rates Introduction A floating exchange rate system exists in countries where the foreign exchange market determines the relative value of a currency Examples - the U.S. dollar, the European Union’s euro, the Japanese yen, and the British pound A pegged exchange rate system exists when the value of a currency is fixed to a reference country and then the exchange rate between that currency and other currencies is determined by the reference currency exchange rate Many developing countries have pegged exchange rates Introduction A dirty float exists when the value of a currency is determined by market forces, but with central bank intervention if it depreciates too rapidly against an important reference currency China adopted this policy in 2005 With a fixed exchange rate system countries fix their currencies against each other at a mutually agreed upon value prior to the introduction of the euro, some European Union countries operated with fixed exchange rates within the context of the European Monetary System (EMS) Introduction Question: What role does the international monetary system play in determining exchange rates? Answer: To answer this question, we have to look at the evolution of the international monetary system The Gold Standard The Bretton Woods system The International Monetary Fund The World Bank The Gold Standard Question: What is the Gold Standard? Answer: The origin of the gold standard dates back to ancient times when gold coins were a medium of exchange, unit of account, and store of value To facilitate trade, a system was developed so that payment could