Lecture12

Lecture12 - Exchange Rate Determination Money What is...

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Unformatted text preview: Exchange Rate Determination Money What is money? Do you have to accept it? Who backs electronic money? 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 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 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 (SDRs plus technical help) available to member nations experiencing balance-of-...
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Lecture12 - Exchange Rate Determination Money What is...

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