GMS 724 Chapter Notes - Chapter 9: European Exchange Rate Mechanism, Fisher Hypothesis, European Central Bank

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Lori Anne Heckbert

Document Summary

In 1944, near the end of wwii, the major allied governments met to determine what was needed to bring economic stability and growth to the post-war world. As a result of those meetings, the imf came into official existence on. December 27, 1945, with the goal of promoting exchange rate stability and facilitating the international flow of currencies. 29 countries originally signed, and as of july 2011, there were 187 members. Through a process of surveillance, the imf monitors the global economy as well as the economies of individual countries and advises on needed policy adjustments. Provides technical assistance and makes loans to countries in debt. Imf provides a great deal of assistance to member countries, negotiating with them to provide financial assistance if they agree to adopt certain economic stabilization policies. Usd or gold to buy currency member countries with instant reserve assets, thereby expanding global liquidity.