GMS 400 Lecture Notes - Lecture 4: Reserve Currency

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 400
• Professor: Dale Carl

Document Summary

Initial purpose to defend against the soviet union (the initial purpose) A type of political system where there is a monarchy in place however, they ultimately do not make up legislature. They do have the final sign off on all legislature but there is an appointed political leader elected by the people who does make the legislature ie the. China is buying us government bonds because they are generating so much money in their financial expansion that they need some place to invest in. The purpose of the imf is to provide loans to countries who require financial support. Purpose is to regulate and record exchange rates in countries. List one reason why the imf is unpopular. They are a last resort for monetary funding for a country because if high interest rates. Adds more debt to countries already in financial distress. Brick of gold to a drowning person analogy. Dictate policies in country ie imposing sanctions.