Study Guide Chapter 8

Study Guide Chapter - Chapter 8 Review definitions Appreciate when a currency gains value against another currency in international markets Bretton

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Chapter 8 Review definitions concepts examples and questions of the definitions Appreciate: when a currency gains value against another currency in international markets. Bretton Woods: a 1944 conference where the victors of World War II created international economic institutions which have lasted in some form until the present day. In terms of monetary relations, the allies agreed to create the International Monetary Fund and peg currencies to the U.S. dollar, which would be in turn pegged to gold. Contagion: a situation in which investors fear that other countries face difficulties similar to those of a country undergoing a currency crisis and thereby divest from the suspect countries, triggering a wider economic collapse. Depreciate: when a currency loses value against another currency in international markets. everal countries have replaced their currency with a more stable one Devalue: when monetary authorities declare a new, decreased value for their currency. countries may peg their currency to
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This note was uploaded on 11/29/2010 for the course IR 109 taught by Professor Heinz during the Spring '10 term at Rochester.

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Study Guide Chapter - Chapter 8 Review definitions Appreciate when a currency gains value against another currency in international markets Bretton

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