chapter  1
Introduction: The International Monetary System
Pages 5

The notion of a ‘global monetary system’ usually means the gold exchange standard that was adopted after World War II in the Bretton Woods Agreement, in which each member state is WR¿[LWVFXUUHQF\ZLWKVSHFL¿HGXQLWVRIJROG,QUHDOLW\LWLVD¿[HGH[FKDQJHUDWHV\VWHPLQ ZKLFKHDFKFRXQWU\LVWRPDLQWDLQD¿[HGH[FKDQJHUDWHYLVjYLVWKH86'ZKLOHWKH86'LV WRPDLQWDLQ¿[HGSDULW\ZLWKVSHFL¿HGXQLWVRIJROG7KHDJUHHPHQWDGRSWHGWKH86'DVWKH LQWHUQDWLRQDOFXUUHQF\DQG WKH8QLWHG6WDWHVPDGH WKHFRPPLWPHQWRIJLYLQJRQHRXQFHRI JROGIRUHYHU\86'VXUUHQGHUHG)URPRQZDUGVWKH8QLWHG6WDWHVEHFDPHLQYROYHGLQ WKHZDULQ9LHWQDPDQGWKDWPLOLWDU\H[SHQGLWXUHGUDLQHGWKHLUHFRQRP\WRRPXFK7KHUHVXOW ZDVWKHTXLFNGHSUHFLDWLRQRIWKH86'DQGWKDWKDGEHHQUHÀHFWHGLQWKHFRQWLQXRXVKLJKHU SULFHVRIJROG)URPWKHRI¿FLDO86'SHURXQFHWKDWDQFKRUHGWKHLQWHUQDWLRQDOPRQHWDU\ V\VWHPWKH86'GHFOLQHGWR86'R]LQ86'R]LQDQG86'R]LQ 7KHGHFOLQHRIWKH86'EHLQJWKHV\PSWRPRIWKHGHFOLQHRI$PHULFDQHFRQRPLFV\VWHP

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