IB 201 Lecture Notes - Lecture 6: Special Drawing Rights, Cheerleading, Structural Adjustment
6 Dec 2016
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Document Summary
Nations on both sides of the war had to finance huge military expenses, so printed more currency. Currency exceeded gold reserves: limited flexibility of monetary policy of central banks by limiting ability to expand money supply during great depression. Us dollar increased, prices of us exports increased, trade deficit increased): expanded to g20 (discuss international monetary systems and key issues in the global economy) Understanding how international monetary policy, imf, and world bank impact business. Businesses seek to operate in a stable and predictable environment by reducing risks and unexpected issues that may impact both operations and profitability. Global firms monitor the policies and discussions of the g20 and the other economic organizations so that they can identify new opportunities and use their leverage to protect their markets and businesses. Global business in the private sector is heavily impacted by the imf, world bank, and other development organizations.
