MGCR 382 Lecture 7: IB chapter 7
3 Apr 2016
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Document Summary
The international monetary system and the balance of payments. Under the gold standard, countries agree to buy or sell their paper currencies in exchange for gold. In 1821 the united kingdom became the first country to adopt the gold standard. The gold standard effectively created a fixed exchange rate system. Sterling-based gold standard: most firms accepted either gold or british pounds in settlement of transactions. Renew the gold standard on a greatly modified basis. International bank for reconstruction and development world bank. Help finance reconstruction of the war-torn european economics. Build the economies of the worlds developing countries. To join, a country must pay a quota. Measures and records transactions between residents of one country and residents of all other countries. Help identify emerging markets for goods and services. Can warn of possible new policies that may alter a country"s business climate. Can indicate reductions in a country"s foreign-exchange reserves. Can signal increased riskiness of lending to particular countries.
