Global Monetary Syatem

7/31/2019 Global Monetary Syatem

1/10

International monetary systems

From Wikipedia, the free encyclopedia

Jump to:navigation,search

International monetary systems are sets of internationally agreed rules, conventions andsupporting institutions that facilitateinternational trade,cross border investmentandgenerally thereallocation of capitalbetweennation states. They provide means of paymentacceptable between buyers and sellers of different nationality, including deferred payment.To operate successfully, they need to inspire confidence, to provide sufficient liquidity forfluctuating levels of trade and to provide means by which global imbalances can be corrected.The systems can grow organically as the collective result of numerous individual agreementsbetween international economic actors spread over several decades. Alternatively, they canarise from a single architectural vision as happened atBretton Woodsin 1944.

Currency trading withfloating exchange ratesat theForeign exchange marketis a key part ofthe post 1971 financial system.

Contents

[hide]

1 Historical overview 2 History of modern global monetary orders

o 2.1 The pre WWI financial order: 18701914o 2.2 Between the World Wars: 19191939o 2.3 The Bretton Woods Era: 19451971o 2.4 The post Bretton Woods system: 1971 present

2.4.1 The "Revived Bretton Woods system" identified in 2003 3 Calls for a "New Bretton Woods" 4 See also 5 References 6 External links

[edit] Historical overview

See also:Reserve currency
http://en.wikipedia.org/wiki/International_monetary_systems#mw-headhttp://en.wikipedia.org/wiki/International_monetary_systems#mw-headhttp://en.wikipedia.org/wiki/International_monetary_systems#mw-headhttp://en.wikipedia.org/wiki/International_monetary_systems#p-searchhttp://en.wikipedia.org/wiki/International_monetary_systems#p-searchhttp://en.wikipedia.org/wiki/International_monetary_systems#p-searchhttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/Redistribution_(economics)http://en.wikipedia.org/wiki/Redistribution_(economics)http://en.wikipedia.org/wiki/Redistribution_(economics)http://en.wikipedia.org/wiki/Nation_statehttp://en.wikipedia.org/wiki/Nation_statehttp://en.wikipedia.org/wiki/Nation_statehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/Floating_exchange_ratehttp://en.wikipedia.org/wiki/Floating_exchange_ratehttp://en.wikipedia.org/wiki/Floating_exchange_ratehttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/International_monetary_systemshttp://en.wikipedia.org/wiki/International_monetary_systemshttp://en.wikipedia.org/wiki/International_monetary_systemshttp://en.wikipedia.org/wiki/International_monetary_systems#Historical_overviewhttp://en.wikipedia.org/wiki/International_monetary_systems#Historical_overviewhttp://en.wikipedia.org/wiki/International_monetary_systems#History_of_modern_global_monetary_ordershttp://en.wikipedia.org/wiki/International_monetary_systems#History_of_modern_global_monetary_ordershttp://en.wikipedia.org/wiki/International_monetary_systems#The_pre_WWI_financial_order:_1870.E2.80.931914http://en.wikipedia.org/wiki/International_monetary_systems#The_pre_WWI_financial_order:_1870.E2.80.931914http://en.wikipedia.org/wiki/International_monetary_systems#The_pre_WWI_financial_order:_1870.E2.80.931914http://en.wikipedia.org/wiki/International_monetary_systems#The_pre_WWI_financial_order:_1870.E2.80.931914http://en.wikipedia.org/wiki/International_monetary_systems#Between_the_World_Wars:_1919.E2.80.931939http://en.wikipedia.org/wiki/International_monetary_systems#Between_the_World_Wars:_1919.E2.80.931939http://en.wikipedia.org/wiki/International_monetary_systems#Between_the_World_Wars:_1919.E2.80.931939http://en.wikipedia.org/wiki/International_monetary_systems#Between_the_World_Wars:_1919.E2.80.931939http://en.wikipedia.org/wiki/International_monetary_systems#The_Bretton_Woods_Era:_1945.E2.80.931971http://en.wikipedia.org/wiki/International_monetary_systems#The_Bretton_Woods_Era:_1945.E2.80.931971http://en.wikipedia.org/wiki/International_monetary_systems#The_Bretton_Woods_Era:_1945.E2.80.931971http://en.wikipedia.org/wiki/International_monetary_systems#The_Bretton_Woods_Era:_1945.E2.80.931971http://en.wikipedia.org/wiki/International_monetary_systems#The_post_Bretton_Woods_system:_1971_.E2.80.93_presenthttp://en.wikipedia.org/wiki/International_monetary_systems#The_post_Bretton_Woods_system:_1971_.E2.80.93_presenthttp://en.wikipedia.org/wiki/International_monetary_systems#The_post_Bretton_Woods_system:_1971_.E2.80.93_presenthttp://en.wikipedia.org/wiki/International_monetary_systems#The_post_Bretton_Woods_system:_1971_.E2.80.93_presenthttp://en.wikipedia.org/wiki/International_monetary_systems#The_.22Revived_Bretton_Woods_system.22_identified_in_2003http://en.wikipedia.org/wiki/International_monetary_systems#The_.22Revived_Bretton_Woods_system.22_identified_in_2003http://en.wikipedia.org/wiki/International_monetary_systems#Calls_for_a_.22New_Bretton_Woods.22http://en.wikipedia.org/wiki/International_monetary_systems#Calls_for_a_.22New_Bretton_Woods.22http://en.wikipedia.org/wiki/International_monetary_systems#See_alsohttp://en.wikipedia.org/wiki/International_monetary_systems#See_alsohttp://en.wikipedia.org/wiki/International_monetary_systems#Referenceshttp://en.wikipedia.org/wiki/International_monetary_systems#Referenceshttp://en.wikipedia.org/wiki/International_monetary_systems#External_linkshttp://en.wikipedia.org/wiki/International_monetary_systems#External_linkshttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=1http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=1http://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/File:Forex.svghttp://en.wikipedia.org/wiki/File:Forex.svghttp://en.wikipedia.org/wiki/File:Forex.svghttp://en.wikipedia.org/wiki/File:Forex.svghttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=1http://en.wikipedia.org/wiki/International_monetary_systems#External_linkshttp://en.wikipedia.org/wiki/International_monetary_systems#Referenceshttp://en.wikipedia.org/wiki/International_monetary_systems#See_alsohttp://en.wikipedia.org/wiki/International_monetary_systems#Calls_for_a_.22New_Bretton_Woods.22http://en.wikipedia.org/wiki/International_monetary_systems#The_.22Revived_Bretton_Woods_system.22_identified_in_2003http://en.wikipedia.org/wiki/International_monetary_systems#The_post_Bretton_Woods_system:_1971_.E2.80.93_presenthttp://en.wikipedia.org/wiki/International_monetary_systems#The_Bretton_Woods_Era:_1945.E2.80.931971http://en.wikipedia.org/wiki/International_monetary_systems#Between_the_World_Wars:_1919.E2.80.931939http://en.wikipedia.org/wiki/International_monetary_systems#The_pre_WWI_financial_order:_1870.E2.80.931914http://en.wikipedia.org/wiki/International_monetary_systems#History_of_modern_global_monetary_ordershttp://en.wikipedia.org/wiki/International_monetary_systems#Historical_overviewhttp://en.wikipedia.org/wiki/International_monetary_systemshttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Floating_exchange_ratehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/Nation_statehttp://en.wikipedia.org/wiki/Redistribution_(economics)http://en.wikipedia.org/wiki/Foreign_investmenthttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_monetary_systems#p-searchhttp://en.wikipedia.org/wiki/International_monetary_systems#mw-head


2/10

Christ drives the Usurers out of the Temple, a woodcut byLucas Cranach the Elder

Throughout history, precious metals such asgoldandsilverhave been used for trade, termedbullion, and since early history the coins of various issuers generally kingdoms and empireshave been traded. The earliest known records of pre - coinage use of bullion for monetaryexchange are from Mesopotamia and Egypt, dating from the third millennium BC.[1]It isbelieved that at this time money played a relatively minor role in the ordering of economiclife for these regions, compared tobarterand centralised redistribution - a process where thepopulation surrendered their produce to ruling authorities who then redistrubted it as they sawfit. Coinage is believed to have first developed in China in the late 7th century BC, andindependently at around the same time inLydia,Asia minor, from where its use spread to

nearby Greek cities and later to the rest of the world.[1]

Sometimes formalmonetary systemshave been imposed by regional rulers. For examplescholars have tentatively suggested that the rulerServius Tulliuscreated a primitive monetarysystem in the archaic period of what was to become theRoman Republic. Tullius reigned inthe sixth century BC - several centuries before Rome is believed to have developed a formalcoinage system.[2]

As with bullion, early use of coinage is believed to have been generally the preserve of theelite. But by about the 4th century BC they were widely used in Greek cities. Coins weregenerally supported by the city state authorities, who endeavoured to ensure they retainedtheir values regardless of fluctuations in the availability of whatever base precious metalsthey were made from.[1]From Greece the use of coins spread slowly westwards throughoutEurope, and eastwards to India. Coins were in use in India from about 400BC, initially theyplayed a greater role in religion than trade, but by the 2nd century had become central tocommercial transactions. Monetary systems that were developed in India were so successfulthey spread through parts of Asia well into the Middle Ages.[1]

As multiple coins became common within a region, they were exchanged bymoneychangers,the predecessors of today'sforeign exchange market, as famously discussed in the Biblicalstory ofJesus and the money changers. In Venice and the Italian city states of the early

Middle Ages, money changers would often have to struggle to perform calculations involvingsix or more currencies. This partly led toFibonacciwriting hisLiber Abaciwhere he
http://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Lucas_Cranach_the_Elderhttp://en.wikipedia.org/wiki/Lucas_Cranach_the_Elderhttp://en.wikipedia.org/wiki/Lucas_Cranach_the_Elderhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Bullionhttp://en.wikipedia.org/wiki/Bullionhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Lydiahttp://en.wikipedia.org/wiki/Lydiahttp://en.wikipedia.org/wiki/Lydiahttp://en.wikipedia.org/wiki/Asia_minorhttp://en.wikipedia.org/wiki/Asia_minorhttp://en.wikipedia.org/wiki/Asia_minorhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/Monetary_systemhttp://en.wikipedia.org/wiki/Monetary_systemhttp://en.wikipedia.org/wiki/Monetary_systemhttp://en.wikipedia.org/wiki/Servius_Tulliushttp://en.wikipedia.org/wiki/Servius_Tulliushttp://en.wikipedia.org/wiki/Servius_Tulliushttp://en.wikipedia.org/wiki/Roman_Republichttp://en.wikipedia.org/wiki/Roman_Republichttp://en.wikipedia.org/wiki/Roman_Republichttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-1http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-1http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-1http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/Moneychangerhttp://en.wikipedia.org/wiki/Moneychangerhttp://en.wikipedia.org/wiki/Moneychangerhttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Jesus_and_the_money_changershttp://en.wikipedia.org/wiki/Jesus_and_the_money_changershttp://en.wikipedia.org/wiki/Jesus_and_the_money_changershttp://en.wikipedia.org/wiki/Fibonaccihttp://en.wikipedia.org/wiki/Fibonaccihttp://en.wikipedia.org/wiki/Fibonaccihttp://en.wikipedia.org/wiki/Liber_Abacihttp://en.wikipedia.org/wiki/Liber_Abacihttp://en.wikipedia.org/wiki/Liber_Abacihttp://en.wikipedia.org/wiki/File:Christus_austreibt.JPGhttp://en.wikipedia.org/wiki/File:Christus_austreibt.JPGhttp://en.wikipedia.org/wiki/File:Christus_austreibt.JPGhttp://en.wikipedia.org/wiki/File:Christus_austreibt.JPGhttp://en.wikipedia.org/wiki/Liber_Abacihttp://en.wikipedia.org/wiki/Fibonaccihttp://en.wikipedia.org/wiki/Jesus_and_the_money_changershttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Moneychangerhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-1http://en.wikipedia.org/wiki/Roman_Republichttp://en.wikipedia.org/wiki/Servius_Tulliushttp://en.wikipedia.org/wiki/Monetary_systemhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/Asia_minorhttp://en.wikipedia.org/wiki/Lydiahttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-money_a_history-0http://en.wikipedia.org/wiki/Bullionhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Lucas_Cranach_the_Elder


3/10

popularised the use ofIndo-Arabic numerals, which displaced the more difficult Romannumerals then in use by western merchants.[3]

Historic international currencies. From top left: crystallinegold, a 5th century BCEPersiandaric, an 8th century Englishmancus, and an 18th centurySpanish real.

When a given nation or empire has achieved regionalhegemony, its currency has been a basisfor international trade, and hence for a de facto monetary system. In the West Europe andthe Middle Eastan early such coin was thePersian daric, of thePersian empire. This wassucceeded byRoman currencyof theRoman empire, such as thedenarius, then theGoldDinarof the Muslim empire, and later from the 16th to 20th centuries, during theAge ofImperialismby the currency of European colonial powers: theSpanish dollar, the DutchGilder, the French Franc and the British Pound Sterling; at times one currency has been pre-eminent, at times no one dominated. With the growth of American power, the US Dollarbecame the basis for the international monetary system, formalized in the Bretton Woodsagreement that established the postWorld War II monetary order, with fixed exchange ratesof currencies to the dollar, andconvertibilityof the dollar into gold. Since the breakdown ofthe Bretton Woods system, culminating in theNixon shockof 1971, ending convertibility, theUS dollar has remained the de facto basis of the world monetary system, though no longer de

jure, with various European currencies and the Japanese Yen being used. Since the formationof the Euro, the Euro has gained use as areserve currencyand a unit of transactions, thoughthe dollar has remained the primary currency.

A dominant currency may be used directly or indirectly by other nations for example,

English kings minted goldmancus, presumably to function as dinars to exchange withIslamic Spain, and more recently, a number of nations have used the US dollar as their localcurrency, a custom calleddollarization.

Until the 19th century, the global monetary system was loosely linked at best, with Europe,the Americas, India and China (among others) having largely separate economies, and hencemonetary systems were regional.European colonization of the Americas, starting with theSpanish empire, led to the integration of American and European economies and monetarysystems, and European colonization of Asia led to the dominance of European currencies,notably the British pound sterling in the 19th century, succeeded by the US dollar in the 20thcentury. Some, such asMichael Hudson, foresee the decline of a single basis for the global

monetary system, and instead the emergence of regionaltrade blocs, citing the emergence ofthe Euro as an example of this phenomenon. See alsoGlobal financial systems,world-
http://en.wikipedia.org/wiki/Arabic_numeralshttp://en.wikipedia.org/wiki/Arabic_numeralshttp://en.wikipedia.org/wiki/Arabic_numeralshttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Ascent-2http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Ascent-2http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Ascent-2http://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Hegemonyhttp://en.wikipedia.org/wiki/Hegemonyhttp://en.wikipedia.org/wiki/Hegemonyhttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_empirehttp://en.wikipedia.org/wiki/Persian_empirehttp://en.wikipedia.org/wiki/Persian_empirehttp://en.wikipedia.org/wiki/Roman_currencyhttp://en.wikipedia.org/wiki/Roman_currencyhttp://en.wikipedia.org/wiki/Roman_currencyhttp://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Denariushttp://en.wikipedia.org/wiki/Denariushttp://en.wikipedia.org/wiki/Denariushttp://en.wikipedia.org/wiki/Gold_Dinarhttp://en.wikipedia.org/wiki/Gold_Dinarhttp://en.wikipedia.org/wiki/Gold_Dinarhttp://en.wikipedia.org/wiki/Gold_Dinarhttp://en.wikipedia.org/wiki/Age_of_Imperialismhttp://en.wikipedia.org/wiki/Age_of_Imperialismhttp://en.wikipedia.org/wiki/Age_of_Imperialismhttp://en.wikipedia.org/wiki/Age_of_Imperialismhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Convertibilityhttp://en.wikipedia.org/wiki/Convertibilityhttp://en.wikipedia.org/wiki/Convertibilityhttp://en.wikipedia.org/wiki/Nixon_shockhttp://en.wikipedia.org/wiki/Nixon_shockhttp://en.wikipedia.org/wiki/Nixon_shockhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Islamic_Spainhttp://en.wikipedia.org/wiki/Islamic_Spainhttp://en.wikipedia.org/wiki/Dollarizationhttp://en.wikipedia.org/wiki/Dollarizationhttp://en.wikipedia.org/wiki/Dollarizationhttp://en.wikipedia.org/wiki/European_colonization_of_the_Americashttp://en.wikipedia.org/wiki/European_colonization_of_the_Americashttp://en.wikipedia.org/wiki/European_colonization_of_the_Americashttp://en.wikipedia.org/wiki/Michael_Hudson_(economist)http://en.wikipedia.org/wiki/Michael_Hudson_(economist)http://en.wikipedia.org/wiki/Michael_Hudson_(economist)http://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/Global_financial_systemhttp://en.wikipedia.org/wiki/Global_financial_systemhttp://en.wikipedia.org/wiki/Global_financial_systemhttp://en.wikipedia.org/wiki/World-systems_approachhttp://en.wikipedia.org/wiki/World-systems_approachhttp://en.wikipedia.org/wiki/File:International_money_montage.jpghttp://en.wikipedia.org/wiki/File:International_money_montage.jpghttp://en.wikipedia.org/wiki/File:International_money_montage.jpghttp://en.wikipedia.org/wiki/File:International_money_montage.jpghttp://en.wikipedia.org/wiki/World-systems_approachhttp://en.wikipedia.org/wiki/Global_financial_systemhttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/Michael_Hudson_(economist)http://en.wikipedia.org/wiki/European_colonization_of_the_Americashttp://en.wikipedia.org/wiki/Dollarizationhttp://en.wikipedia.org/wiki/Islamic_Spainhttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Reserve_currencyhttp://en.wikipedia.org/wiki/Nixon_shockhttp://en.wikipedia.org/wiki/Convertibilityhttp://en.wikipedia.org/wiki/Spanish_dollarhttp://en.wikipedia.org/wiki/Age_of_Imperialismhttp://en.wikipedia.org/wiki/Age_of_Imperialismhttp://en.wikipedia.org/wiki/Gold_Dinarhttp://en.wikipedia.org/wiki/Gold_Dinarhttp://en.wikipedia.org/wiki/Denariushttp://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Roman_currencyhttp://en.wikipedia.org/wiki/Persian_empirehttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Hegemonyhttp://en.wikipedia.org/wiki/Spanish_realhttp://en.wikipedia.org/wiki/Mancushttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Persian_darichttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Ascent-2http://en.wikipedia.org/wiki/Arabic_numerals


4/10

systems approachandpolarity in international relations. It was in the later half of the 19thcentury that a monetary system with close to universal global participation emerged, based onthe gold standard.

[edit] History of modern global monetary orders

[edit] The pre WWI financial order: 18701914

Main article:Gold Standard#Establishment of the international gold standard

Thegold standardwidely adopted in this era rested on the conversion of paper notes into pre-set quantities of gold.

From the 1870s to the outbreak of World War I in 1914, the world benefited from a wellintegrated financial order, sometimes known as the First age of Globalisation.[4][5]Moneyunions were operating which effectively allowed members to accept each others currency as

legal tender including theLatin Monetary Union(Belgium, Italy, Switzerland, France) andScandinavian monetary union(Denmark, Norway and Sweden). In the absence of sharedmembership of a union, transactions were facilitated by widespread participation in thegoldstandard, by both independent nations and their colonies. Great Britain was at the time theworld's pre-eminent financial, imperial, and industrial power, ruling more of the world andexporting more capital as a percentage of her national income than any other creditor nationhas since.[6]

While capital controls comparable to theBretton Woods System were not in place, damagingcapital flows were far less common than they were to be in the post 1971 era. In fact GreatBritain's capital exports helped to correct global imbalances as they tended to be counter

cyclical, rising when Britain's economy went into recession, thus compensating other statesfor income lost from export of goods.[7]Accordingly, this era saw mostly steady growth and arelatively low level of financial crises. In contrast to the Bretton Woods system, the preWorld War I financial order was not created at a single high level conference; rather itevolved organically in a series of discrete steps. TheGilded Age, a time of especially rapiddevelopment in North America, falls into this period.

[edit] Between the World Wars: 19191939
http://en.wikipedia.org/wiki/World-systems_approachhttp://en.wikipedia.org/wiki/World-systems_approachhttp://en.wikipedia.org/wiki/Polarity_in_international_relationshttp://en.wikipedia.org/wiki/Polarity_in_international_relationshttp://en.wikipedia.org/wiki/Polarity_in_international_relationshttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=2http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=2http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=3http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=3http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=3http://en.wikipedia.org/wiki/Gold_Standard#Establishment_of_the_international_gold_standardhttp://en.wikipedia.org/wiki/Gold_Standard#Establishment_of_the_international_gold_standardhttp://en.wikipedia.org/wiki/Gold_Standard#Establishment_of_the_international_gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-4http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-4http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-4http://en.wikipedia.org/wiki/Latin_Monetary_Unionhttp://en.wikipedia.org/wiki/Latin_Monetary_Unionhttp://en.wikipedia.org/wiki/Latin_Monetary_Unionhttp://en.wikipedia.org/wiki/Scandinavian_monetary_unionhttp://en.wikipedia.org/wiki/Scandinavian_monetary_unionhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-5http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-5http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-5http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-6http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-6http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-6http://en.wikipedia.org/wiki/Gilded_Agehttp://en.wikipedia.org/wiki/Gilded_Agehttp://en.wikipedia.org/wiki/Gilded_Agehttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=4http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=4http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=4http://en.wikipedia.org/wiki/File:Goldkey_logo_removed.jpghttp://en.wikipedia.org/wiki/File:Goldkey_logo_removed.jpghttp://en.wikipedia.org/wiki/File:Goldkey_logo_removed.jpghttp://en.wikipedia.org/wiki/File:Goldkey_logo_removed.jpghttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=4http://en.wikipedia.org/wiki/Gilded_Agehttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-6http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-5http://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Scandinavian_monetary_unionhttp://en.wikipedia.org/wiki/Latin_Monetary_Unionhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-4http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_Standard#Establishment_of_the_international_gold_standardhttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=3http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=2http://en.wikipedia.org/wiki/Polarity_in_international_relationshttp://en.wikipedia.org/wiki/World-systems_approach


5/10

This era saw periods of world wide economic hardship. The image isDorothea Lange'sMigrant Motherdepiction of destitutepea-pickersinCalifornia, taken in March 1936.

The years between the world wars have been described as a period ofde-globalisation , asboth international trade and capital flows shrank compared to the period before World War I.During World War I countries had abandoned the gold standard and, except for the UnitedStates, returned to it only briefly. By the early 30's the prevailing order was essentially afragmented system of floating exchange rates .[8]In this era, the experience of Great Britainand others was that the gold standard ran counter to the need to retain domestic policyautonomy. To protect their reserves of gold countries would sometimes need to raise interest

rates and generally follow a deflationary policy. The greatest need for this could arise in adownturn, just when leaders would have preferred to lower rates to encourage growth.Economist Nicholas Davenport[9]had even argued that the wish to return Britain to the goldstandard, "sprang from a sadistic desire by the Bankers to inflict pain on the British workingclass."

By the end of World War I, Great Britain was heavily indebted to the United States, allowingthe USA to largely displace her as the worlds number one financial power. The United Stateshowever was reluctant to assume Great Britain's leadership role, partly due to isolationistinfluences and a focus on domestic concerns. In contrast to Great Britain in the previous era,capital exports from the US were not counter cyclical. They expanded rapidly with the United

States's economic growth in the twenties up to 1928, but then almost completely halted as theUS economy began slowing in that year. As theGreat Depressionintensified in 1930,financial institutions were hit hard along with trade; in 1930 alone 1345 US banks collapsed.[10]During the 1930s the United States raised trade barriers, refused to act as an internationallender of last resort, and refused calls to cancel war debts, all of which further aggravatedeconomic hardship for other countries. According to economistJohn Maynard Keynesanother factor contributing to the turbulent economic performance of this era was theinsistence of French premierClemenceauthat Germany paywar reparationsat too high alevel, which Keynes described in his bookThe Economic Consequences of the Peace.

[edit] The Bretton Woods Era: 1945

1971
http://en.wikipedia.org/wiki/Dorothea_Langehttp://en.wikipedia.org/wiki/Dorothea_Langehttp://en.wikipedia.org/wiki/Dorothea_Langehttp://en.wikipedia.org/wiki/Migrant_Motherhttp://en.wikipedia.org/wiki/Migrant_Motherhttp://en.wikipedia.org/wiki/Pea-pickershttp://en.wikipedia.org/wiki/Pea-pickershttp://en.wikipedia.org/wiki/Pea-pickershttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-7http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-7http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-7http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-8http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-8http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-8http://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-9http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-9http://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/Georges_Clemenceauhttp://en.wikipedia.org/wiki/Georges_Clemenceauhttp://en.wikipedia.org/wiki/Georges_Clemenceauhttp://en.wikipedia.org/wiki/World_War_I_reparationshttp://en.wikipedia.org/wiki/World_War_I_reparationshttp://en.wikipedia.org/wiki/World_War_I_reparationshttp://en.wikipedia.org/wiki/The_Economic_Consequences_of_the_Peacehttp://en.wikipedia.org/wiki/The_Economic_Consequences_of_the_Peacehttp://en.wikipedia.org/wiki/The_Economic_Consequences_of_the_Peacehttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=5http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=5http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=5http://en.wikipedia.org/wiki/File:Lange-MigrantMother02.jpghttp://en.wikipedia.org/wiki/File:Lange-MigrantMother02.jpghttp://en.wikipedia.org/wiki/File:Lange-MigrantMother02.jpghttp://en.wikipedia.org/wiki/File:Lange-MigrantMother02.jpghttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=5http://en.wikipedia.org/wiki/The_Economic_Consequences_of_the_Peacehttp://en.wikipedia.org/wiki/World_War_I_reparationshttp://en.wikipedia.org/wiki/Georges_Clemenceauhttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-9http://en.wikipedia.org/wiki/Great_Depressionhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-8http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-7http://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Pea-pickershttp://en.wikipedia.org/wiki/Migrant_Motherhttp://en.wikipedia.org/wiki/Dorothea_Lange


6/10

Main article:Bretton Woods system

Harry Dexter White(left) andJohn Maynard Keynes(right) atBretton Woods

British and American policy makers began to plan the post war international monetarysystem in the early 1940s. The objective was to create an order that combined the benefits ofan integrated and relatively liberal international system with the freedom for governments topursue domestic policies aimed at promoting full employment and social wellbeing.[11]Theprincipal architects of the new system, John Maynard Keynes andHarry Dexter White,

created a plan which was endorsed by the 42 countries attending the 1944Bretton Woodsconference. The plan involved nations agreeing to a system of fixed but adjustable exchangerates where the currencies were pegged against the dollar, with the dollar itself convertibleinto gold. So in effect this was a gold dollar exchange standard. There were a number ofimprovements on the old gold standard. Two international institutions, theInternationalMonetary Fund(IMF) and theWorld Bankwere created; A key part of their function was toreplace private finance as more reliable source of lending for investment projects indeveloping states. At the time the soon to be defeated powers of Germany and Japan wereenvisaged as states soon to be in need of such development, and there was a desire from boththe US and Britain not to see the defeated powers saddled with punitive sanctions that wouldinflict lasting pain on future generations. The new exchange rate system allowed countries

facing economic hardship to devalue their currencies by up to 10% against the dollar (more ifapproved by the IMF) thus they would not be forced to undergo deflation to stay in the goldstandard. A system of capital controls was introduced to protect countries from the damagingeffects of capital flight and to allow countries to pursue independent macro economic policies[12]while still welcoming flows intended for productive investment. Keynes had arguedagainst the dollar having such a central role in the monetary system, and suggested aninternational currency calledbancorbe used instead, but he was overruled by the Americans.Towards the end of the Bretton Woods era, the central role of the dollar became a problem asinternational demand eventually forced the US to run a persistent trade deficit, whichundermined confidence in the dollar. This, together with the emergence of a parallel marketfor gold where the price soared above the official US mandated price, led to speculatorsrunning down the US gold reserves. Even when convertibility was restricted to nations only,some, notably France,[13]continued building up hoards of gold at the expense of the US.
http://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/Bretton_Woods_Conferencehttp://en.wikipedia.org/wiki/Bretton_Woods_Conferencehttp://en.wikipedia.org/wiki/Bretton_Woods_Conferencehttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-10http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-10http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-10http://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-11http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-11http://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/File:WhiteandKeynes.jpghttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-11http://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/United_Nations_Monetary_and_Financial_Conferencehttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-10http://en.wikipedia.org/wiki/Bretton_Woods_Conferencehttp://en.wikipedia.org/wiki/John_Maynard_Keyneshttp://en.wikipedia.org/wiki/Harry_Dexter_Whitehttp://en.wikipedia.org/wiki/Bretton_Woods_system


7/10

Eventually these pressures caused President Nixon to end all convertibility into gold on 15August 1971. This event marked the effective end of the Bretton Woods systems; attemptswere made to find other mechanisms to preserve the fixed exchange rates over the next fewyears, but they were not successful, resulting in a system of floating exchange rates.[13]

[edit] The post Bretton Woods system: 1971 present

Main article:Washington Consensus

TheNew York Stock Exchange. The current era has seen huge and turbulent flows of capitalbetween nations.

An alternative name for the post Bretton Woods system is the Washington Consensus.While the name was coined in 1989, the associated economic system came into effect yearsearlier: according to economic historianLord Skidelskythe Washington Consensus isgenerally seen as spanning 19802009 (the latter half of the 1970s being a transitionalperiod).[14]The transition away from Bretton Woods was marked by aswitchfrom a state ledto a market led system.[4]The Bretton Wood system is considered by economic historians tohave broken down in the 1970s:[14]crucial events beingNixon suspending the dollar'sconvertibility into goldin 1971, the United states abandonment of Capital Controls in 1974,and Great Britain's ending of capital controls in 1979 which was swiftly copied by most othermajor economies.

In some parts of the developing world, liberalisation brought significant benefits for largesections of the population most prominently withDeng Xiaoping'sreforms in Chinasince1978 and the liberalisation of India after her1991 crisis.

Generally the industrial nations experienced much slower growth and higher unemploymentthan in the previous era, and according to Professor Gordon Fletcher in retrospect the 1950sand 60s when the Bretton Woods system was operating came to be seen as a golden age.[15]Financial crises have been more intense and have increased in frequency by about 300% with the damaging effects prior to 2008 being chiefly felt in the emerging economies. On thepositive side, at least until 2008 investors have frequently achieved very high rates of return,with salaries and bonuses in the financial sector reaching record levels.
http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=6http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=6http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=6http://en.wikipedia.org/wiki/Washington_Consensushttp://en.wikipedia.org/wiki/Washington_Consensushttp://en.wikipedia.org/wiki/Washington_Consensushttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/Post-war_displacement_of_Keynesianismhttp://en.wikipedia.org/wiki/Post-war_displacement_of_Keynesianismhttp://en.wikipedia.org/wiki/Post-war_displacement_of_Keynesianismhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/Richard_Nixon#Economyhttp://en.wikipedia.org/wiki/Richard_Nixon#Economyhttp://en.wikipedia.org/wiki/Richard_Nixon#Economyhttp://en.wikipedia.org/wiki/Richard_Nixon#Economyhttp://en.wikipedia.org/wiki/Deng_Xiaopinghttp://en.wikipedia.org/wiki/Deng_Xiaopinghttp://en.wikipedia.org/wiki/Deng_Xiaopinghttp://en.wikipedia.org/wiki/Economic_reforms_in_Chinahttp://en.wikipedia.org/wiki/Economic_reforms_in_Chinahttp://en.wikipedia.org/wiki/Economic_reforms_in_Chinahttp://en.wikipedia.org/wiki/1991_India_economic_crisishttp://en.wikipedia.org/wiki/1991_India_economic_crisishttp://en.wikipedia.org/wiki/1991_India_economic_crisishttp://en.wikipedia.org/wiki/Golden_Age_of_Capitalismhttp://en.wikipedia.org/wiki/Golden_Age_of_Capitalismhttp://en.wikipedia.org/wiki/Golden_Age_of_Capitalismhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-14http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-14http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-14http://en.wikipedia.org/wiki/File:NYC_NYSE.jpghttp://en.wikipedia.org/wiki/File:NYC_NYSE.jpghttp://en.wikipedia.org/wiki/File:NYC_NYSE.jpghttp://en.wikipedia.org/wiki/File:NYC_NYSE.jpghttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-14http://en.wikipedia.org/wiki/Golden_Age_of_Capitalismhttp://en.wikipedia.org/wiki/1991_India_economic_crisishttp://en.wikipedia.org/wiki/Economic_reforms_in_Chinahttp://en.wikipedia.org/wiki/Deng_Xiaopinghttp://en.wikipedia.org/wiki/Richard_Nixon#Economyhttp://en.wikipedia.org/wiki/Richard_Nixon#Economyhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-GPE-3http://en.wikipedia.org/wiki/Post-war_displacement_of_Keynesianismhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Washington_Consensushttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=6http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Copeland-12


8/10

[edit] The

"Revived

Bretton

Woods

system"

identified in2003

From 2003,economistssuch asMichael P.Dooley,Peter M.Garber, andDavid

Folkerts-Landau began writing papers[17]describing the emergence of a new internationalsystem involving an interdependency between states with generally high savings in Asialending and exporting to western states with generally high spending. Similar to the original

Bretton Woods, this included Asian currencies being pegged to the dollar, though this time bythe unilateral intervention of Asian governments in the currency market to stop theircurrencies appreciating. The developing world as a whole stopped running current accountdeficits in 1999[18]widely seen as a response to unsympathetic treatment following the1997 Asian Financial Crisis. The most striking example of east-west interdependency is therelationship between China and America, whichNiall FergusoncallsChimerica. From 2004,Dooley et al. began using the termBretton Woods IIto describe this de facto state of affairs,and continue to do so as late as 2009.[19]Others have described this supposed "Bretton WoodsII", sometimes called "New Bretton Woods",[20]as a "fiction", and called for the eliminationof the structural imbalances that underlie it, viz, the chronic US current account deficit.[21]

However since at least 2007 those authors have also used the term "Bretton Woods II" to callfor a new de jure system: for key international financial institutions like the IMF and WorldBank to be revamped to meet the demands of the current age,[22]and between 2008 to mid2009 the termsBretton Woods IIandNew Bretton Woods was increasingly used in the lattersense. By late 2009, with less emphases on structural reform to the international monetarysystem and more attention being paid to issues such asre-balancingthe world economy,

Bretton Woods IIis again frequently used to refer to the practice some countries have of

unilaterally pegging their currencies to the dollar.

[edit] Calls for a "New Bretton Woods"

G-20 leaders atSummit on Financial Markets and the World Economy.

International monetary systems over two centuries[16]

Date System Reserve assets Leaders

18031873 Bimetallism Gold,silver France,UK

18731914 Gold standard Gold,pound UK

19141924Anchored dollar standard Gold,dollar US,UK,France

19241933 Gold standard Gold,dollar,pound US,UK,France

19331971Anchored dollar standard Gold,dollar US,G-10

19711973 Dollar standard Dollar US

19731985 Flexible exchange rates Dollar,mark,poundUS,Germany,Japan

19851999 Managed exchange rates Dollar,mark,yen US,G7,IMF

1999- Dollar,euro Dollar,euro,yen US,Eurozone,IMF
http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=7http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=7http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=7http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-16http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-16http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-16http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-17http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-17http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-17http://en.wikipedia.org/wiki/1997_Asian_Financial_Crisishttp://en.wikipedia.org/wiki/1997_Asian_Financial_Crisishttp://en.wikipedia.org/wiki/Niall_Fergusonhttp://en.wikipedia.org/wiki/Niall_Fergusonhttp://en.wikipedia.org/wiki/Niall_Fergusonhttp://en.wikipedia.org/wiki/Chimericahttp://en.wikipedia.org/wiki/Chimericahttp://en.wikipedia.org/wiki/Chimericahttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-18http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-18http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-18http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-19http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-19http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-19http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-20http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-20http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-20http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-21http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-21http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-21http://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=8http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=8http://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-15http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-15http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-15http://en.wikipedia.org/wiki/Bimetallismhttp://en.wikipedia.org/wiki/Bimetallismhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Group_of_Ten_(economic)http://en.wikipedia.org/wiki/Group_of_Ten_(economic)http://en.wikipedia.org/wiki/Group_of_Ten_(economic)http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/G8http://en.wikipedia.org/wiki/G8http://en.wikipedia.org/wiki/G8http://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/G8http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Deutsche_Markhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Group_of_Ten_(economic)http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Bimetallismhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-15http://en.wikipedia.org/wiki/File:Cumbre_de_Washington.jpghttp://en.wikipedia.org/wiki/File:Cumbre_de_Washington.jpghttp://en.wikipedia.org/wiki/File:Cumbre_de_Washington.jpghttp://en.wikipedia.org/wiki/File:Cumbre_de_Washington.jpghttp://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=8http://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-21http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-20http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-19http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-18http://en.wikipedia.org/wiki/Chimericahttp://en.wikipedia.org/wiki/Niall_Fergusonhttp://en.wikipedia.org/wiki/1997_Asian_Financial_Crisishttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-17http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-16http://en.wikipedia.org/w/index.php?title=International_monetary_systems&action=edit&section=7


9/10

Leading financial journalistMartin Wolfhas reported that all financial crises since 1971 havebeen preceded by largecapital inflowsinto affected regions. While ever since the seventiesthere have been numerous calls from theglobal justice movementfor a revampedinternational system to tackle the problem of unfettered capital flows, it wasn't until late 2008that this idea began to receive substantial support from leading politicians. On September 26,

2008,French President Nicolas Sarkozy, then also thePresident of the European Union, said,"We must rethink the financial system from scratch, as at Bretton Woods."[23]

On October 13, 2008, British Prime MinisterGordon Brown[24]said world leaders must meetto agree to a new economic system:

We must have a new Bretton Woods, building a new international financialarchitecture for the years ahead.

However, Brown's approach was quite different to the originalBretton Woods system,

emphasising the continuation ofglobalizationandfree tradeas opposed to a return to fixedexchange rates.[25]There were tensions between Brown and Sarkozy, who argued that the"Anglo-Saxon" model of unrestrained markets had failed.[26]However European leaders wereunited in calling for a "Bretton Woods II" summit to redesign the world's financialarchitecture.[27]President Bush was agreeable to the calls, and the resulting meeting was the2008 G-20 Washington summit. International agreement was achieved for the commonadoption of Keynesian fiscal stimulus,[28]an area where the US and China were to emerge asthe worlds leading actors.[29]Yet there was no substantial progress towards reforming theinternational financial system, and nor was there at the 2009 meeting of the World EconomicForum at Davos[30]

Despite this lack of results leaders continued to campaign forBretton Woods II.ItalianEconomics MinisterGiulio Tremontisaid that Italy would use its 2009G7chairmanship topush for a "New Bretton Woods." He had been critical of the U.S.'s response to the globalfinancial crisis of 2008, and had suggested that the dollar may be superseded as the basecurrency of the Bretton Woods system.[31][32][33]

Choike, a portal organisation representing southern hemisphereNGOs, called for theestablishment of "international permanent and binding mechanisms of control over capitalflows" and as of March 2009 had achieved over 550 signatories from civil societyorganisations.[34]

March 2009saw GordonBrowncontinuing toadvocate forreform andthe grantingof extended

powers to international financial institutions like the IMF at the April G20 summit in London,[40]and was said to have president Obama's support .[41]Also during March 2009, in a speech

entitledReform the International Monetary System,Zhou Xiaochuan, the governor of thePeople's Bank of Chinacame out in favour of Keynes's idea of a centrally managed global

Competing ideas for the next international monetary system

System Reserve assets Leaders

Flexible exchange rates[35] Dollar,euro,renminbiUS,Eurozone,China

Special drawing rights standard[36] SDR US,G-20,IMF

Gold standard[37] Gold,dollar US

Delhi Declaration[38][39] Currency basket BRICS
http://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Martin_Wolfhttp://en.wikipedia.org/wiki/Martin_Wolfhttp://en.wikipedia.org/wiki/Martin_Wolfhttp://en.wikipedia.org/wiki/Capital_accounthttp://en.wikipedia.org/wiki/Capital_accounthttp://en.wikipedia.org/wiki/Capital_accounthttp://en.wikipedia.org/wiki/Global_justice_movementhttp://en.wikipedia.org/wiki/Global_justice_movementhttp://en.wikipedia.org/wiki/Global_justice_movementhttp://en.wikipedia.org/wiki/Nicolas_Sarkozyhttp://en.wikipedia.org/wiki/Nicolas_Sarkozyhttp://en.wikipedia.org/wiki/Nicolas_Sarkozyhttp://en.wikipedia.org/wiki/President_of_the_European_Unionhttp://en.wikipedia.org/wiki/President_of_the_European_Unionhttp://en.wikipedia.org/wiki/President_of_the_European_Unionhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-22http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-22http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-22http://en.wikipedia.org/wiki/Gordon_Brownhttp://en.wikipedia.org/wiki/Gordon_Brownhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-23http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-23http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-23http://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-24http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-24http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-24http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-25http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-25http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-25http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-26http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-26http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-26http://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-27http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-27http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-27http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-28http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-28http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-28http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-29http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-29http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-29http://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Giulio_Tremontihttp://en.wikipedia.org/wiki/Giulio_Tremontihttp://en.wikipedia.org/wiki/Giulio_Tremontihttp://en.wikipedia.org/wiki/G7http://en.wikipedia.org/wiki/G7http://en.wikipedia.org/wiki/G7http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-30http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-30http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-31http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-31http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-32http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-32http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-32http://en.wikipedia.org/w/index.php?title=Choike&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Choike&action=edit&redlink=1http://en.wikipedia.org/wiki/NGOhttp://en.wikipedia.org/wiki/NGOhttp://en.wikipedia.org/wiki/NGOhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-33http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-33http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-33http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-39http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-39http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-40http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-40http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-40http://en.wikipedia.org/wiki/Zhou_Xiaochuanhttp://en.wikipedia.org/wiki/Zhou_Xiaochuanhttp://en.wikipedia.org/wiki/Zhou_Xiaochuanhttp://en.wikipedia.org/wiki/People%27s_Bank_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Bank_of_Chinahttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/2012_BRICS_summithttp://en.wikipedia.org/wiki/2012_BRICS_summithttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-38http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-38http://en.wikipedia.org/wiki/Currency_baskethttp://en.wikipedia.org/wiki/Currency_baskethttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/Currency_baskethttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-38http://en.wikipedia.org/wiki/2012_BRICS_summithttp://en.wikipedia.org/wiki/2012_BRICS_summithttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/Gold_standardhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/People%27s_Bank_of_Chinahttp://en.wikipedia.org/wiki/Zhou_Xiaochuanhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-40http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-39http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-33http://en.wikipedia.org/wiki/NGOhttp://en.wikipedia.org/w/index.php?title=Choike&action=edit&redlink=1http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-32http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-31http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-30http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/G7http://en.wikipedia.org/wiki/Giulio_Tremontihttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-29http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-28http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-27http://en.wikipedia.org/wiki/2008_G-20_Washington_summithttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-26http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-25http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-24http://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-23http://en.wikipedia.org/wiki/Gordon_Brownhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-22http://en.wikipedia.org/wiki/President_of_the_European_Unionhttp://en.wikipedia.org/wiki/Nicolas_Sarkozyhttp://en.wikipedia.org/wiki/Global_justice_movementhttp://en.wikipedia.org/wiki/Capital_accounthttp://en.wikipedia.org/wiki/Martin_Wolf


10/10

reserve currency. Dr Zhou argued that it was unfortunate that part of the reason for theBretton Woods system breaking down was the failure to adopt Keynes'sbancor. Dr Zhou saidthat national currencies were unsuitable for use as global reserve currencies as a result of theTriffin dilemma- the difficulty faced by reserve currency issuers in trying to simultaneouslyachieve their domestic monetary policy goals and meet other countries' demand for reserve

currency. Dr Zhou proposed a gradual move towards increased used of IMFspecial drawingrights(SDRs) as a centrally managed global reserve currency[42][43]His proposal attractedmuch international attention.[44]In a November 2009 article published inForeign Affairsmagazine, economistC. Fred Bergstenargued that Dr Zhou's suggestion or a similar changeto the international monetary system would be in the United States' best interests as well asthe rest of the world's.[45]

Leaders meeting in April at the2009 G-20 London summitagreed to allow $250 Billion ofSDRs to be created by the IMF, to be distributed to all IMF members according to eachcountries voting rights. In the aftermath of the summit, Gordon Brown declared "theWashington Consensus is over".[46]However in abookpublished during September 2009,

ProfessorRobert Skidelsky, an international expert onKeynesianism, argued it was still tooearly to say whether a new international monetary system was emerging.[14]

On Jan 27, in his opening address to the2010 World Economic Forumin Davos, PresidentSarkozy repeated his call for a new Bretton Woods, and was met by wild applause by asizeable proportion of the audience.[47]
http://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/BRICShttp://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/Bancorhttp://en.wikipedia.org/wiki/Triffin_dilemmahttp://en.wikipedia.org/wiki/Triffin_dilemmahttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-41http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-41http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-42http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-42http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-42http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-43http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-43http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-43http://en.wikipedia.org/wiki/Foreign_Affairshttp://en.wikipedia.org/wiki/Foreign_Affairshttp://en.wikipedia.org/wiki/Foreign_Affairshttp://en.wikipedia.org/wiki/C._Fred_Bergstenhttp://en.wikipedia.org/wiki/C._Fred_Bergstenhttp://en.wikipedia.org/wiki/C._Fred_Bergstenhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Bersten-44http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Bersten-44http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Bersten-44http://en.wikipedia.org/wiki/2009_G-20_London_summithttp://en.wikipedia.org/wiki/2009_G-20_London_summithttp://en.wikipedia.org/wiki/2009_G-20_London_summithttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-45http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-45http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-45http://en.wikipedia.org/wiki/Keynes:_The_Return_of_the_Masterhttp://en.wikipedia.org/wiki/Keynes:_The_Return_of_the_Masterhttp://en.wikipedia.org/wiki/Keynes:_The_Return_of_the_Masterhttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/Keynesianismhttp://en.wikipedia.org/wiki/Keynesianismhttp://en.wikipedia.org/wiki/Keynesianismhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-46http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-46http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-46http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-46http://en.wikipedia.org/wiki/World_Economic_Forumhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-return-13http://en.wikipedia.org/wiki/Keynesianismhttp://en.wikipedia.org/wiki/Robert_Skidelskyhttp://en.wikipedia.org/wiki/Keynes:_The_Return_of_the_Masterhttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-45http://en.wikipedia.org/wiki/2009_G-20_London_summithttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-Bersten-44http://en.wikipedia.org/wiki/C._Fred_Bergstenhttp://en.wikipedia.org/wiki/Foreign_Affairshttp://en.wikipedia.org/wiki/International_monetary_systems#cite_note-43http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-42http://en.wikipedia.org/wiki/International_monetary_systems#cite_note-41http://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Special_drawing_rightshttp://en.wikipedia.org/wiki/Triffin_dilemmahttp://en.wikipedia.org/wiki/Bancor

Documents

Global Monetary Syatem