GMS 724 Lecture Notes - Lecture 5: Special Drawing Rights, European Central Bank, European Monetary System
2 Mar 2016
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Document Summary
Special drawing rights (sdrs) the imf"s unit of account the imf lends money to ease balance-of-payments difficulties. The global crisis in 2008-2009 raised concerns over global liquidity prompted the g20 to inject huge amounts of cash into the imf. Greece"s 2010-2011 financial crisis required assistance from the imf and the eu the imf required greece to adopt very unpopular austerity measures o o. The g20, mindful of the global financial crisis, voted to significantly increase reserves available to the imf to help countries in distress. Greece has been a beneficiary of imf funds, but continues to be quite unstable. To describe the international monetary fund and its role in the determination of exchange rates. To discuss the major exchange-rate arrangements that countries use. To explain how the european monetary system works and how the euro became the currency of the euro zone. To identify the major determinants of exchange rates. To show how managers try to forecast exchange-rate movements.
