GEB 3373 Lecture Notes - Lecture 31: Weighted Arithmetic Mean, European Exchange Rate Mechanism, Special Drawing Rights
14 Oct 2016
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The international monetary system & the balance of payments. Imf"s o(cid:271)je(cid:272)ti(cid:448)es among members, and avoid competitive exchange depreciation. Imf temporarily available to them and to correct maladjustments in their balance of payments international balance of payments of members. Each member pays deposit, partly in gold, partly in domestic currency called quota. Quotas: quota) agree to make economic reforms in exchange for funds) > refle(cid:272)t (cid:271)oth size of e(cid:272)o(cid:374)o(cid:373)(cid:455) a(cid:374)d (cid:373)e(cid:373)(cid:271)er"s politi(cid:272)al i(cid:373)porta(cid:374)(cid:272)e. > serve as part of its official reserves. > determine borrowing power (each member can borrow up to 25% of its. Additional borrowing allowed under imf conditionality, (ex: countries. Bretton woods: par value of us $ = per ounce of gold (i. e. , = 1/35 ounce of gold) Dollars were convertible into gold @ /ounce. Other currencies were convertible into dollars (at mostly fixed prices), so these currencies were indirectly convertible into gold.
