Chap 12 exchange rate determination

Chap 12 exchange rate determination - © 2007 Robert Sweo...

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Unformatted text preview: © 2007 Robert Sweo Exchange Rate Determination © 2007 Robert Sweo Money What is money? Do you have to accept it? Who backs electronic money? © 2007 Robert Sweo What's Different about International Money? Most nations have unique currencies Trades between nations must be valued in someone's money Value of different nations money change in relation to one another © 2007 Robert Sweo What Lead Us Here Gold Coin and Gold Bullion Standards Bretton Woods System- U.S. dollar fixed to Gold- Other Nations currency fixed to U.S. Dollar- Set up IMF and IBRD (Now World Bank)to hold currencies, maintain ratios and make loans Nixon eliminates U.S. gold standard © 2007 Robert Sweo Purpose of IMF To promote exchange rate stability To facilitate the international flow of currencies and hence the balanced growth of international trade To promote international monetary cooperation To establish a multilateral system of payments To make resources available to member nations experiencing balance-of-payments difficulties © 2007 Robert Sweo...
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This note was uploaded on 10/28/2009 for the course ACG 3141 taught by Professor Graybeal during the Spring '08 term at University of Central Florida.

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Chap 12 exchange rate determination - © 2007 Robert Sweo...

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