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INTERNATIONAL FINANCIAL MANAGEMENT EUN / RESNICK Fourth Edition ,[object Object],[object Object],[object Object],[object Object],[object Object],2 Chapter Two The International Monetary System
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter Two Outline
Evolution of the  International Monetary System ,[object Object],[object Object],[object Object],[object Object],[object Object]
Bimetallism: Before 1875 ,[object Object],[object Object]
Bimetallism: Before 1875  Gresham’s Law   ,[object Object],[object Object],[object Object]
Classical Gold Standard:  1875-1914 ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Classical Gold Standard:  1875-1914 $30 = £6 $5 = £1
Classical Gold Standard:  1875-1914 ,[object Object],[object Object]
Price-Specie-Flow Mechanism ,[object Object],[object Object],[object Object],[object Object]
Classical Gold Standard:  1875-1914 ,[object Object],[object Object],[object Object]
Interwar Period: 1915-1944 ,[object Object],[object Object],[object Object]
Bretton Woods System:  1945-1972 ,[object Object],[object Object],[object Object],[object Object]
Bretton Woods System:  1945-1972 ,[object Object],[object Object],[object Object]
Bretton Woods System:  1945-1972 U.S. dollar Gold Pegged at $35/oz. German mark British pound French franc Par Value Par Value Par Value
The Flexible Exchange Rate Regime: 1973-Present. ,[object Object],[object Object],[object Object],[object Object]
Current Exchange Rate Arrangements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
European Monetary System ,[object Object],[object Object],[object Object],[object Object],[object Object]
What Is the Euro? ,[object Object],[object Object]
What are the different denominations of the euro notes and coins ? ,[object Object],[object Object],[object Object],[object Object]
How did the euro affect contracts denominated in national currency? ,[object Object]
Euro Area ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],22 Countries participating in the euro: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Long-Term Impact of the Euro ,[object Object],[object Object],[object Object]
The Mexican Peso Crisis   December 20, 1994 ,[object Object],[object Object],[object Object],[object Object]
The Mexican Peso Crisis December 20, 1994 ,[object Object],[object Object],[object Object],[object Object]
The Asian Currency Crisis July 2, 1997 ,[object Object],[object Object],[object Object]
The Argentinean Peso Crisis 2002 ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Argentinean Peso Crisis ,[object Object],[object Object],[object Object]
The Argentinean Peso Crisis ,[object Object],[object Object],[object Object],[object Object]
Currency Crisis Explanations ,[object Object],[object Object],[object Object],[object Object]
Fixed versus Flexible  Exchange Rate Regimes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fixed versus Flexible  Exchange Rate Regimes ,[object Object],[object Object],[object Object]
Fixed versus Flexible  Exchange Rate Regimes Q of  £ Dollar price per  £ (exchange rate) S D $1.40 Trade deficit Demand (D) Supply (S)
Flexible  Exchange Rate Regimes ,[object Object]
Fixed versus Flexible  Exchange Rate Regimes Supply (S) Demand (D) Demand (D*) D = S Q of  £ Dollar price per  £ (exchange rate) $1.40 Dollar depreciates (flexible regime) $1.60
Fixed versus Flexible  Exchange Rate Regimes ,[object Object],[object Object],[object Object]
Fixed versus Flexible  Exchange Rate Regimes Supply (S) Demand (D) Demand (D*) D* = S Contractionary policies (fixed regime) Q of  £ Dollar price per  £ (exchange rate) $1.40

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02[1].international monetary system

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  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Bretton Woods System: 1945-1972 U.S. dollar Gold Pegged at $35/oz. German mark British pound French franc Par Value Par Value Par Value
  • 15.
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  • 17.
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  • 19.
  • 20.
  • 21.
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  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. Fixed versus Flexible Exchange Rate Regimes Q of £ Dollar price per £ (exchange rate) S D $1.40 Trade deficit Demand (D) Supply (S)
  • 33.
  • 34. Fixed versus Flexible Exchange Rate Regimes Supply (S) Demand (D) Demand (D*) D = S Q of £ Dollar price per £ (exchange rate) $1.40 Dollar depreciates (flexible regime) $1.60
  • 35.
  • 36. Fixed versus Flexible Exchange Rate Regimes Supply (S) Demand (D) Demand (D*) D* = S Contractionary policies (fixed regime) Q of £ Dollar price per £ (exchange rate) $1.40

Notas do Editor

  1. Price-specie flow mechanism Adjustment mechanism under the classic gold standard allowing disturbances in the price level in one country to be wholly or partly offset by a countervailing flow of specie (gold coins) that would act to equalize prices across countries and automatically bring international payments into balance.
  2. Cyprus, Denmark, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia, Sweden and the United Kingdom are members of the EU but are not currently participating in the single currency. Denmark is a member of the Exchange Rate Mechanism II (ERM II). This means that the Danish krone is linked to the euro, but the exchange rate is not fixed. This map is used with permission