POLI 243 Lecture Notes - Scammell, Precious Metal, Money Supply
20 Apr 2013
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Document Summary
Chapter 8: the politics of international monetary relations. In studying international monetary regimes, we use 3 main characteristics to describe and compare them: The nature of reserves: two types of monetary reserves: Commodity (precious metal such as silver and gold) serves as monetary reserve because they have high intrinsic value recognized internationally: these goods are extremely desirable in their own right. National currency can be come internationally attractive because it is believed to have value and is widely accepted- requires that foreign holders of this currency have access to the issuing country"s domestic market. Convertibility of capital: refers to how open or closed the international financial system is, indicates how well national financial markets are integrated. Scammell, a successful international monetary system must have. The need for a medium of international exchange. Adequate ties between nations" financial institutions (in order to utilize the medium of exchange)
