CHAPTER 2 SUMMARIZED NOTES A) THE EVOLUTION OF INTERNATIONAL MONETARY SYSTEM 1) THE CLASSICAL GOLD STANDARD ERA (1870-1914) Characteristics: All currencies are valued in terms of their gold equivalent and thus all currencies are linked together. Eg: 1 ounce of gold = $20.67 1 ounce of gold = £4.25 so 1£ = (20.67 /4.25) = $4.87 Money has a value fixed in terms of commodity gold. Since gold is costly to produce‚ governments could not easily increase their
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banks have to keep with the RBI. * It is a central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves with the RBI. * Cash Reserve Ratio is also used as a tool in monetary policy by changing the amount of funds available for banks to make loans with. * Effects on money supply: If the reserve requirement set by the RBI is high‚ the amount of funds with the commercial banks to loan out would be low thereby leading to
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This document of ECO 316 Week 4 Chapter 22 The International Financial System and Monetary Policy contains: 22.1 Multiple Choice Questions 1) In the early 2000s‚ the Argentine government’s fiscal policy guaranteed which of the following may take place? 2) In the early 2000s‚ what problem did the Argentine central bank face? 3) Foreign central banks 4) International financial transactions are most likely to affect the U.S. money supply when 5) Deliberate actions by a central
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GROUP DEBATE (Scroll down for Readings) Instructions The debate is a group assessment‚ so all members of the group receive the same mark out of 15. Each group will be allowed twelve minutes. If there are two members in a group‚ each may speak for up to six minutes; if three members‚ four minutes. The first speaker should explain the question‚ introduce his/her group members‚ briefly outline the structure of the argument‚ and perhaps cover some of the arguments. The last speaker should
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Monetary Policy in Vietnam: Alternatives to Inflation Targeting Le Anh Tu Packard (tu.packard@gmail.com) Fifth Draft July 2007 Paper prepared for the Political Economy Research Institute (PERI) at the University of Massachusetts‚ Amherst with support from the United Nations Department of Economic and Social Affairs (UNDESA). Earlier versions of this paper were presented to the May 2005 CEDES/Amherst Research Conference in Buenos Aires and the July 2005 Da Nang Symposium on Continuing Renovation
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A Brief History of the International Monetary System Kenneth N. Matziorinis 1. Introduction The international monetary system is the structure of financial payments‚ settlements‚ practices‚ institutions and relations that govern international trade and investment around the world. To understand the international monetary system‚ we can start by looking at how a domestic monetary system is structured. The Canadian financial system‚ for instance‚ is composed of a) a currency; b) a central
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1.0 Demand Side Policies In any country’s economy there are demand side policies. In general‚ demand side policies aims to change the aggregate demand (AD) in the economy. AD consists of factors‚ which are consumer spending + government spending + investments + exports – imports [C+I+G+(X-M)]‚ and anything that affects these factors will affect demand. Demand side policies consists of monetary policies which focuses on changing interest rates and money supply
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phone number] [Type the fax number] Study of the behaviour of the whole (aggregate) economies or economic systems Lawnswood [Type the company address] [Type the phone number] [Type the fax number] My Report: Macroeconomic Policies; Macroeconomic policies examine the economy on a national or global scale‚ and also indicate the current status of the economy‚ (The economy involves all the wealth and resources that a country or region has). Moreover‚ it examines economy wide phenomena like
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“Impact of RBI Monetary Policy on Banks” A PROJECT SUBMITTED TO Prof. Mishu Tripathi Submitted By: Roll No. Name 21 Ambika Nadar 23 Nutan Panchal 25 Satyam Pandya Date of Submission: 7th Oct 2012 Management of Banks and Financial Services MFM SEM – V (Batch-: 2010 - 2013) [pic] ACKNOWLEDGEMENT As the saying goes‚ man is
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world it is in the 106th place. The ranki s about in the middle. Curently the GDP based on PPP is stll growng and is expected to grow in the future. GDP based on PPP‚ Information retrieved from: The IMF Data Mapper‚on 19th September 2010 Fiscal Policy South Africa’s budget summary As you can see from the table bellow‚ South Africa’s revenue during 2009/2010 was 642 990 million but their expenditures exceeded the revenues by 95 573 million so there was a deficit in their budget. During 2010/2011
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