POL SCI 20 Chapter Notes - Chapter 8: Thai Baht, North American Free Trade Agreement, World Politics
Document Summary
Chapter 8 international monetary relations outline. Woods system, or europe"s economic and monetary union, can create rules that facilitate cooperation in international monetary policy. Japanese yen: hybrid policies where a government may let some currency floating but will set limits, bretton woods monetary system order negotiated among world. William jennings bryan supporting silver instead: most counties went back to gold after world war i but the international cooperation that made is successful before was no longer present, failure to cooperate was exacerbated by the great. German mark: for high inflation countries, this meant they would need to lower inflation to commit, done by raising interest rates and austerity measures, problems in 1991 after unification of west and east. Germany and fear of inflation: interest rates were raised very high as a response, those linked to the mark also had to raise interest rates, causing a large recession, next step: common currency managed by the european.
