a brief history of the ims n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
A brief history of the IMS PowerPoint Presentation
Download Presentation
A brief history of the IMS

Loading in 2 Seconds...

play fullscreen
1 / 21

A brief history of the IMS - PowerPoint PPT Presentation


  • 95 Views
  • Uploaded on

A brief history of the IMS. Up to WW II. Outline. Mercantilism The Gold Standard The Inter-War Period. The International Monetary System. All foreign exchange arrangements and mechanisms used by various countries

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'A brief history of the IMS' - tavia


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
outline
Outline

Mercantilism

The Gold Standard

The Inter-War Period

the international monetary system
The International Monetary System

All foreign exchange arrangements and mechanisms used by various countries

It requires some degree of economic organization, integration, and international cooperation

the ims
The IMS

A true IMS appears when international trade becomes:

  • significant
  • permanent
  • subject to international laws
why is international trade so important
Why is international trade so important?

It generates foreign exchange

ims glossary of terms
IMS: Glossary of terms
  • convertibility = exchanging paper money for gold
  • exchange rate = the price of one currency expressed in terms of another currency
  • fixed exchange rate system = a system in which governments maintain a fixed exchange rate for long periods of time
  • floating exchange rate system = a system in which exchange rates are determined by the market
  • devaluation = decrease in the price of a currency under a fixed exchange rate system
  • revaluation = increase in the price of a currency under a fixed exchange rate system
  • weakening (depreciation) = decrease in the price of a currency under a floating exchange rate system
  • strengthening (appreciation) = increase in the price of a currency under a floating exchange rate system
1156 earliest known foreign exchange contract
1156: Earliest known foreign exchange contract

Two brothers borrow 115 Genovese pounds and agree to reimburse the bank's agents in Constantinople the sum of 460 bezants one month after their arrival in that city.

history of the international monetary system
History of the International Monetary System
  • Mercantilism: XVI and XVII centuries
  • Bi-metallism and free trade: up to 1875
  • Classical Gold Standard: 1875 - 1914
  • Interwar Period: 1915-1944
  • Bretton Woods : 1944
  • The Gold Exchange Standard (1945-1971)
  • The current IMS
slide10

1500-1540: On average between 1,000 and 1,500 kg. of gold reach Spain each year during this period, obtained by plunder, especially from the Aztecs and Incas

slide11
1615

First balance of trade and balance of payments calculations

The calculations for England by Sir Lionell Cranfield and Mr. Wolstenholme are referred to by Sir Francis Bacon in an essay written in 1616

mercantilism xvi and xvii centuries
Mercantilism: XVI and XVII centuries
  • Tough restrictions on imports (see the Navy Act)
  • Aggressive promotion of exports
  • Hoarding of precious metals (see Hernan Cortez)
the industrial revolution
The Industrial Revolution

England becomes the most productive country in the world

bi metallism and free trade up to 1875
Bi-metallism and free trade: up to 1875

Coinage was maintained for both gold and silver until the price of silver came down

  • Britain abolishes the coinage of silver in 1814
  • US abolishes the coinage of silver in 1873
  • France abolishes the coinage of silver in 1878
classical gold standard 1875 1914
Classical Gold Standard: 1875 - 1914

Gold gains unchallenged supremacy

National currencies are fully convertible

Gold can be freely imported and exported

Trade imbalances are corrected through the price-specie-flow mechanism

1914 1918
1914 - 1918

The Great War

The demise of the great European empires

The first communist country: USSR

interwar period 1915 1944
Interwar Period: 1915-1944

Hyperinflation in many European countries

The end of the Gold Standard

Economic nationalism and trade wars

Lack of international cooperation

The Great Depression

The rise of the US as a major economic and political power