Chap 10
The International Monetary System
Chapter Outline
Opening Case: Argentina’s Monetary Crisis
Introduction
The Gold Standard
Mechanics of the Gold Standard Strength of the Gold Standard The Period between the Wars, 1918-1939
The Bretton Woods System
The Role of the IMF The Role of the World Bank
The Collapse of the Fixed Exchange Rate System
The Floating Exchange Rate Regime
The Jamaica Agreement Exchange Rates Since 1973 Country Focus: The U.S. Dollar, Oil Prices, and Recycling Petrodollars
Fixed Versus Floating Exchange Rates
The Case for Floating Exchange Rates The Case for Fixed Exchange Rates Who is Right?
Exchange Rate Regimes in Practice
Pegged Exchange Rates Currency Boards
CRISIS MANAGEMENT BY the imf
Financial Crisis in the Post-Bretton Woods Era Mexican Currency Crisis of 1995 The Asian Crisis Evaluating the IMF’s Policy Prescriptions Country Focus: Turkey and the IMF
FOCUS ON mANAGERIAL IMPLICATIONS
Currency Management Business Strategy Management Focus: Airbus and the Euro Corporate - Government Relations
SUMMARY
Critical THINKING AND Discussion Questions
CLOSING CASE: China’s Managed Float
Learning Objectives
1. Be familiar with the historical development of the modern global monetary system.
2. Discuss the role played by the World Bank and the IMF in the international monetary system.
3. Be familiar with the differences between a fixed and floating exchange rate system.
4. Know what exchange rate regimes are used in the world today, and why countries adopt different exchange rate regimes.
5. Understand the debate surrounding the role of the IMF in the management of financial crises.
6. Appreciate the implications of the global monetary system for currency management and business strategy.
Chapter Summary
The
Chapter Outline
Opening Case: Argentina’s Monetary Crisis
Introduction
The Gold Standard
Mechanics of the Gold Standard Strength of the Gold Standard The Period between the Wars, 1918-1939
The Bretton Woods System
The Role of the IMF The Role of the World Bank
The Collapse of the Fixed Exchange Rate System
The Floating Exchange Rate Regime
The Jamaica Agreement Exchange Rates Since 1973 Country Focus: The U.S. Dollar, Oil Prices, and Recycling Petrodollars
Fixed Versus Floating Exchange Rates
The Case for Floating Exchange Rates The Case for Fixed Exchange Rates Who is Right?
Exchange Rate Regimes in Practice
Pegged Exchange Rates Currency Boards
CRISIS MANAGEMENT BY the imf
Financial Crisis in the Post-Bretton Woods Era Mexican Currency Crisis of 1995 The Asian Crisis Evaluating the IMF’s Policy Prescriptions Country Focus: Turkey and the IMF
FOCUS ON mANAGERIAL IMPLICATIONS
Currency Management Business Strategy Management Focus: Airbus and the Euro Corporate - Government Relations
SUMMARY
Critical THINKING AND Discussion Questions
CLOSING CASE: China’s Managed Float
Learning Objectives
1. Be familiar with the historical development of the modern global monetary system.
2. Discuss the role played by the World Bank and the IMF in the international monetary system.
3. Be familiar with the differences between a fixed and floating exchange rate system.
4. Know what exchange rate regimes are used in the world today, and why countries adopt different exchange rate regimes.
5. Understand the debate surrounding the role of the IMF in the management of financial crises.
6. Appreciate the implications of the global monetary system for currency management and business strategy.
Chapter Summary
The