国际商务 The International Monetary System.ppt

Learning Objectives Be familiar with the historical development of the modern global monetary system. Be familiar with the differences between a fixed and floating exchange rate system. Know what exchange rate regimes are used in the world today and why countries adopt different exchange rate regimes. Managerial implications. Case- Argentina’s Monetary Crisis Summary of Key Facts (Opening Case) In the 1990s, fixed exchange rate system. By 2001, economy was in trouble. Anticipation of devaluation by corporations and individuals. Measures by the government and IMF. Devaluation came in early 2002. Introduction p222 The institutional arrangements that countries adopt to govern exchange rates are known as the international monetary system. When a country allows the foreign exchange market to determine the relative value of a currency, a floating exchange rate system exists. When a country fixes the value of its currency relative to a reference currency, a pegged exchange rate system exists. Introduction p222 When a country tried to hold the value of its currency within some range of a reference currency, dirty float exists. Countries that adopt a fixed exchange rate system fix their currencies against each other. Discussion What is the gold standard? What benefits does it provide? Why did it fail? What is Bretton Woods system? Why did it fail? 1.1 The Gold Standard p223 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, as trade grew, payment was made in paper currency which was linked to gold at a fixed rate. 1.1 Mechanics of the Gold Standard p224 Pegging currencies to gold and guaranteeing convertibility is known as the gold standard. In the 1880s, most of the world’s trading nations followed the gold standard. Under the gold standard one U.S. dollar was defined as equivalent to 23.22 grains of fine (pure) gold The amount