ch03THE INTERNATIONAL MONETARY SYSTEM(跨国公司财务管理-Joseph F. Greco).ppt

Multinational Financial Management Alan Shapiro 7th EditionJ.Wiley & Sons Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton CHAPTER 3 THE INTERNATIONAL MONETARY SYSTEM CHAPTER OVERVIEW I. ALTERNATIVE EXCHANGE RATE SYSTEMS II. A BRIEF HISTORY OF THE INTERNATIONAL MONETARY SYTEM III. THE EUROPEAN MONETARY SYSTEM AND MONETARY UNION IV. EMERGING MARKET CURRENCY CRISES PART I. ALTERNATIVE  EXCHANGE RATE SYSTEMS I. FIVE MARKET MECHANISMS A. Freely Floating (“Clean Float”) 1. Market forces of supply and demand determine rates. ALTERNATIVE EXCHANGE RATE SYSTEMS 2. Forces influenced by a. price levels b. interest rates c. economic growth 3. Rates fluctuate randomly over time. ALTERNATIVE EXCHANGE RATE SYSTEMS B. Managed Float (“Dirty Float”) 1. Market forces set rates unless excess volatility occurs. 2. Then, central bank determines rate. ALTERNATIVE EXCHANGE RATE SYSTEMS C. Target-Zone Arrangement 1. Rate Determination a. Market forces constrained to upper and lower range of rates. b. Members to the arrangement adjust their national economic policies to maintain target. ALTERNATIVE EXCHANGE RATE SYSTEMS D. Fixed Rate System 1. Rate determination a. Government maintains target rates. b. If rates threatened, central banks buy/sell currency. c. Monetary policies coordinated. ALTERNATIVE EXCHANGE RATE SYSTEMS E. Current System 1. A hybrid system a. Major currencies: use freely- floating method b. Other currencies move in and out of various fixed-rate systems. PART II. A BRIEF HISTORY OF THE INTERNATIONAL MONETARY SYSTEM I. THE USE OF GOLD A. Desirable properties B. In short run: High production costs limit changes. C. In long run: Commodity money insures stability. A BRIEF HISTORY II. The Classical Gold Standard (1821-1914) A. Major global currencies on gold