Monetary Systems

Monetary systems

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Gold is highly conductive to electricity, resistant to corrosion \

Money could be redeemed for actual gold in countries that adopted the gold standard (for a time)

Gold standard faded out as countries adopted a floating currency

The world bank loaned 2 hundred million dollars to France (war relief)

1946-1970s US dollar

Bartering gold, gold backing, Bretton woods agreement, IMF and world bank, fixed exchange, gold standard and floating currency

Canada was the first in deciding to keep a more flexible exchange policy(less dependent on other countries economy's ( set example for today's floating currency system)

Bretton woods agreement created the IMF (international monetary fund) created July, 1944

IMF aims at improving economic conditions of the world and how's it's policies do not necessarily improve economic conditions of borrowing countries

Headquartered in Washington D.C

Promotes —> international monetary cooperation, facilitating the expansion and balance growth of international trade, promoting exchanged día…, assisting in a establishment of a multilateral system of payments and making its resources available

There are moments in which IMF have worsened economic stabilization in countries.

IMF helps members countries decide structural policies that govern international trade

IMF also evaluates the financial sector of member countries

Countries that have been given money typically use the money to rebuild their reserves, stabilize their exchange rates and start projects that will provide a long term economic strength: such as building financial infrastructure

Bilateral counties: Canada, France, Italy, United Kingdom and USA

Multilateral: Philippines

Bretton woods agreement created the world bank in 1944

Developing nations: Mexico and Brazil

Under developed nations: iganda, Mali and dangudash

The world bank assists in these projects through low interest loans, credit, grans, economic consulting and education of poor countries

World bank distributes its countries based on their needs, urgency of impact of the proposed projects

World bank analyzes include: poverty assessments, public expenditure