《国际金融》2.ppt

Lesson Two A Brief History of The International Monetary System Learning Objectives Explain the developments shaping the world monetary system Key terms such as “devaluation” and “depreciation”… Describe how the Euro was created and its effects Terminology Monetary System(货币制度)：generally refers to the entire system that exists in a country to provide industry, commerce and the public with money of all kinds, such as coins, bank-notes, bank credit and deposit. The international monetary system is a system of procedures for making and receiving international payments. The IMS is necessary due to the absence of a universal currency. Terminology A currency appreciates when it becomes more expensive in terms of another; the other currency depreciates. Appreciation and depreciation refer to exchange rate changes in free markets. In a system of fixed exchange rates, the corresponding movements are called revaluation and devaluation. Terminology The Special Drawing Right (SDR) is an international reserve assets created by the IMF to supplement existing foreign exchange reserves It serves as a unit of account for the IMF and is also the base against which some countries peg their exchange rates Defined initially in terms of fixed quantity of gold, the SDR has been redefined several times Currently, it is the weighted average value of currencies of 5 IMF members having the largest exports Individual countries hold SDRs in the form of deposits at the IMF and settle IMF transactions through SDR transfersPure gold standard (mercantilism) Modified gold standard: (fixed exchange rate);1 pound = $4.80 1920’s-1944 IMS chaotic; currency values were determined by market forces rather than monetary authorities In 1945, the Bretton Woods Agreement promoted int’l monetary cooperation, expanded trade to stabilize currencies, and reduced gov’t restrictions Late 1960’s BOP difficulties; SDR’s IMF and the World Bank in the 1990’s A Brief History The Gold Standard, 1876-1913 ----P1,L3