scholarly journals International Monetary Relations: Taking Finance Seriously

2017 ◽  
Vol 31 (3) ◽  
pp. 3-28 ◽  
Author(s):  
Maurice Obstfeld ◽  
Alan M. Taylor
Keyword(s):  
Exchange Rates ◽  
International System ◽  
Current System ◽  
International Monetary System ◽  
Balance Of Payments ◽  
Minimal Risk ◽  
International Liquidity ◽  
Monetary System ◽  
Financial Conditions ◽  
Monetary Relations

In this essay, we highlight the interactions of the international monetary system with financial conditions, not just with the output, inflation, and balance of payments goals usually discussed. We review how financial conditions and outright financial crises have posed difficulties for each of the main international monetary systems in the last 150 years or so: the gold standard, the interwar period, the Bretton Woods system, and the current system of floating exchange rates. We argue that even as the world economy has evolved and sentiments have shifted among widely different policy regimes, there remain three fundamental challenges for any international monetary and financial system: How should exchange rates between national currencies be determined? How can countries with balance of payments deficits reduce these without sharply contracting their economies and with minimal risk of possible negative spillovers abroad? How can the international system ensure that countries have access to an adequate supply of international liquidity—financial resources generally acceptable to foreigners in all circumstances? In concluding, we evaluate how the current international monetary system answers these questions.

scholarly journals Theoretical Problems of the International Monetary System

1967 ◽  
Vol 7 (1) ◽  
pp. 1-28 ◽  
Author(s):  
Harry G. Johnson
Keyword(s):  
Economic Policy ◽  
Exchange Rates ◽  
International Monetary System ◽  
Balance Of Payments ◽  
The Other ◽  
Monetary Reform ◽  
Monetary System ◽  
System Part ◽  
The University ◽  
Policy Problems

Since 1958, international economists have been greatly concerned with the problem of international monetary reform. Research and writing on this problem has taken one or other of two broad forms. Those economists most concerned with policy have concerned themselves with emphasizing the need for inter¬national monetary reform and propounding workable (negotiable) schemes for achieving it. International monetary theorists, on the other hand, have been concerned with the theoretical policy problems of achieving and maintaining balance-of-payments equilibrium in the present internaticnal monetary system of fixed exchange rates. They have also become concerned with the problems of the system as a monetary system. This paper belongs to the latter category. It seeks to outline the main propositions of the analysis of international economic policy and policy problems that have been developed by economists working in this field in recent years. Part I is concerned with the economic policy problems of maintaining both full employ¬ment and balance-of-payments equilibrium, first for a single country on a fixed exchange rate, then for two or more countries linked in a multi-country inter¬national monetary system. Part II is concerned with certain features of the present international monetary system, viewed as a monetary system. The analysis of Part I is Keynesian, that of Part II classical, in approach. Both parts draw heavily on papers presented at the University of Chicago Conference on Inter¬national Monetary Problems organized by R. A. Mundell, held at Chicago in September 1966.

Apartheid and International Monetary Reform

1970 ◽  
Vol 32 (3) ◽  
pp. 338-346 ◽  
Author(s):  
Rodney J. Morrison
Keyword(s):  
International Monetary System ◽  
Balance Of Payments ◽  
Monetary Reform ◽  
International Liquidity ◽  
Black Africans ◽  
Adjustment Mechanism ◽  
Monetary System ◽  
Racial Policy

Apartheid and international monetary reform have received much attention in recent years yet littleof the discussion of these issues has linked them in any meaningful way. The call for changes in the international monetary system has been based upon an alleged insufficiency in international liquidity anda need for an adjustment mechanism for secular balance of payments disequilibria. Opposition to apartheid, South Africa's segregationist racial policy, has been based upon humanitarian concern for the condition of black Africans in that country.

scholarly journals Road to a Great Monetary Power

2015 ◽  
Vol 01 (02) ◽  
pp. 265-282 ◽  
Author(s):  
Wei Li ◽  
Han Su
Keyword(s):  
International System ◽  
International Monetary System ◽  
The United States ◽  
Strategic Competition ◽  
Monetary System ◽  
Salient Dimension ◽  
Economic Engagement ◽  
Monetary Order ◽  
Reform And Opening Up ◽  
The U.S

Since the beginning of its reform and opening up over three decades ago, China has taken great efforts to integrate into the GATT/WTO-centered international trade system and the U.S. Dollar-centered international monetary system. By using the U.S. Dollar as the principal currency in its international economic engagement while exercising strict capital controls domestically, China has practically adopted a U.S. Dollar-dependent strategy to promote export, attract foreign investment, and maintain financial security, thus it has achieved lasting economic growth. However, with the declining credibility of the U.S. Dollar due to the U.S. financial crisis in 2008, and the increasing strategic competition between China and the United States, more and more Chinese in the policy and academic circles are skeptical of China's highly dependent monetary policy. Since 2009, China has begun to adopt a more proactive international monetary strategy by taking such measures as promoting the internationalization of the RMB, initiating new reforms of the international monetary system, and fostering a new regional monetary order. Such changes imply that China is changing its role: moving from being a dependent to a reformer of the U.S. Dollar system, which reflects a salient dimension of the evolving relationships between China and the broader international system.

scholarly journals EVOLUTION AND CONTEMPORARY TRENDS OF THE INTERNATIONAL MONETARY SYSTEM

2018 ◽  
Vol 1 (16) ◽  
pp. 23
Author(s):  
Branka Topić-Pavković
Keyword(s):  
International Economic ◽  
International Monetary System ◽  
Research Paper ◽  
Sustainable Growth ◽  
Monetary Integration ◽  
International Exchange ◽  
International Liquidity ◽  
Economic Relations ◽  
Monetary System ◽  
International Economic Relations

The growth dynamics of international exchange and capital flows is conditioned by the efficiency of the international monetary system whose basic task is to provide for international liquidity and smooth international payments. The tendencies in international economic relations in the time of globalisation have determined further directions for the development of the international monetary system. The breakup of the Bretton-Woods System initiated  the establishment of a new European monetary system with the aim to stabilise the exchange rates and  improve further process of integration and international economic relations. In this research paper we have pointed out to the  fact  that economic interdependence of souvereign countries leads to coordination of macroeconomic policies, and that it  can motivate  monetary integration within the monetary policy. The objective of this research paper is to emphasize the stability of the international monetary system as a prerequisite for sustainable growth of national economies and monetary union. The contemporary international monetary system is characterised by the trend of reduced number of national currencies, as this is  a  logical conseqence of increasing European integrations, but also beacuase of significant economic advanatages. Simultaneously, the costs of the euro changeover and introduction of a common currency are lower if economic performances of member countries mutualy converge.

Anti-Money Laundering and Combating the Financing of Terrorism - Inclusion in Surveillance and Financial Stability Assessments - Guidance Note

Policy Papers ◽  
2012 ◽  
Vol 2012 (104) ◽  
Author(s):  
Keyword(s):  
Money Laundering ◽  
Financial Stability ◽  
International Monetary System ◽  
Balance Of Payments ◽  
Terrorist Financing ◽  
Monetary System ◽  
Guidance Note ◽  
Effective Operation ◽  
Financing Of Terrorism ◽  
The Stability

This note provides guidance on the inclusion of AML/CFT issues in surveillance and financial stability assessments (FSAs). Specifically, it provides a framework for the treatment of cases where money laundering or terrorist financing (ML/TF) and related underlying crimes (i.e., “predicate crimes” or “predicate offenses”) are so serious as to threaten domestic stability, balance of payments stability, the effective operation of the International Monetary System—IMS— (in the case of Article IV surveillance), or the stability of the domestic financial system (in the case of FSAs).

The role of the developing countries in the international monetary system

1982 ◽  
Vol 8 (2) ◽  
pp. 99-115
Author(s):  
Stephen C. Neff
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Exchange Rate Regime ◽  
International Monetary System ◽  
Interesting Phenomenon ◽  
Legal Structure ◽  
Monetary System ◽  
Monetary Regime ◽  
Floating Exchange Rate ◽  
The One

The present international monetary regime has been characterized as a ‘non-system’, an assessment containing an important element of truth from both the economic and juridical standpoints. Indeed, the (more or less) freely floating exchange rate regime which has prevailed in fact since the upheavals of 1971–73 and in law since 1978 is not so much a system as a collective admission that no system is really feasible in the context of the present world economy. A close look at the present order, however, reveals a very interesting phenomenon the importance of which, unfortunately, is sometimes obscured because it is not reflected in any formal legal structure: this is the de facto division of the world into a two-tier order consisting of industrialized states on the one hand, which generally maintain flexible exchange rates, and developing countries on the other hand, which typically have chosen to fix their exchange rates (either against one of the major currencies, or else against a basket of currencies).

The Principles and Operation of the Bretton Woods International Monetary System in the Years 1944–1971. The Reasons for Its Collapse

2016 ◽  
Vol 8 (2) ◽  
pp. 0-0
Author(s):  
Zbigniew Klimiuk
Keyword(s):  
International Trade ◽  
World Economy ◽  
International Monetary System ◽  
The United States ◽  
International Liquidity ◽  
Bretton Woods ◽  
Monetary System ◽  
The Us ◽  
The World ◽  
The Stability

The subject of the article is an analysis of the role of the US dollar in the development of international trade and the world economy during the period of the Bretton Woods monetary system (1944–1971). The international monetary system existing at that time was, in principle, a gold exchange standard based mainly on the national currency of the United States. However, a relatively small role was also played by other currencies including, in particular, the pound sterling. It should be noted that the Bretton Woods rules did not match the conditions in the world economy which emerged after World War II. The main areas of criticism concerned such assumptions as the maintenance of an official fixed price for gold, or a too narrowly interpreter postulate for the stability of the exchange rate. On the other hand, it should be noted that the introduction of the stability of exchange rates and the abolition of restrictions on payments were fundamentally sound decisions. They led in fact to the minimisation of a risk inherent in international trade and its rapid growth. One should also emphasise the fact that from the very beginning, in the international gold based monetary system there was an internal contradiction (paradox), which eventually led to its collapse. This was namely the fact that the growth in world trade created a growing demand for international liquidity. This was tantamount to a necessity to maintain a permanent balance of payments deficit in respect of the country whose currency was considered the key currency. At the same time, the growing volume of the US currency resulted in an increasing crisis of confidence in the dollar.

scholarly journals China and Special Drawing Rights—Towards a Better International Monetary System

2019 ◽  
Vol 12 (2) ◽  
pp. 60 ◽  
Author(s):  
Harrison ◽  
Xiao
Keyword(s):  
Hong Kong ◽  
Current Account ◽  
Current System ◽  
International Monetary System ◽  
Capital Account ◽  
Monetary System ◽  
Special Drawing ◽  
Trading Partners ◽  
Special Drawing Rights ◽  
Rmb Internationalization

China and the international monetary system need each other. The international monetary system is strained, with crisis just around the corner, yet reform is not on anyone’s agenda. Meanwhile China, deeply invested in the current system, faces narrowing options as trading partners question its moves abroad, debt levels rise at home, and its current account moves from surplus to deficit. RMB internationalization might appear to provide a way out, but the policy has its limits and tends to exacerbate rather than relieve tensions. We argue that a tension-reducing solution is at hand to the problems of both the international monetary system and China—IMF-style Special Drawing Rights (SDRs). If in a unilateral initiative China were to make the SDR central to its next phase of capital account opening, China’s institutions, corporates and individuals—presently restricted in their access to international currency—would likely embrace it. Begun by China, with support from the international community and Hong Kong, promulgation of the SDR would usher in an era of lower tensions, providing space for development and avoidance of conflict within a reordered monetary system in which China would have a more prominent role.

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