POLI 445 Lecture 2: POLI 445 Reading notes

• School: McGill University
• Department: Political Science
• Course: POLI 445
• Professor: Mark Brawley

Document Summary

Richard n. cooper, prolegomena to the choice of an international monetary system. Discussion about the reform of the int"l monetary system and its disagreements . International monetary system, its rules and conventions, both govern and are governed by ir; monetary failure can easily lead to political and economic upheavals. Regime: particular set of rules/conventions governing monetary and financial relations between countries. Three features of the monetary regime: role of exchange rates, nature of the reserve assets, degree of control of international capital movements. Gold standard: fixed exchange rates (except for modest variation within gold points) (bofp adjustments), gold reserves (reserve assets) and full freedom of capital movements (capital movements). Bretton woods: adjustable parities (for the role of exchange rates of bofp adjustments), gold (as reserve asset) and controlled (for degree of market convertibility for capital movements). Defining a regime in these dimensions does not indicate how well it will work or how the countries will behave within the regime.