INTERNATIONAL MONETARY

DEVELOPMENT
 IMF is an international organization that oversees the global financial system
by following the macroeconomic policies of its member countries.
 It impact on exchange rates and the balance of payments.
 It is an organization formed with a stated objective of stabilizing international
exchange rates and facilitating development.
 It also offers highly leveraged loans, mainly to poorer countries.
 GOLD STANDARD

 The gold standard is a monetary system in which the standard

economic unit of account is a fixed weight of gold.

 A monetary system in which a country's government allows

its currency unit to be freely converted into fixed amounts of gold
and vice versa
 BRETTON WOODS SYSTEM

 The Bretton Woods system of monetary management established the rules

for commercial and financial relations among the world's major industrial
states in the mid 20th century.

 The Bretton Woods system was the first example of a fully negotiated
monetary order intended to govern monetary relations among independent
nation-states.
 F I X E D - F L E X I B L E E X C H A N G E R AT E
SYSTEMS

 A country's exchange rate regime under which the government or central bank ties
the official exchange rate to another country's currency (or the price of gold).

 The purpose of a fixed exchange rate system is to maintain a country's currency

value within a very narrow band. Also known as pegged exchange rate.

 Fixed rates provide greater certainty for exporters and importers. It

 also helps the government maintain low inflation, which in the long run should
keep interest rates down and stimulate increased trade and investment.
 EURO MARKET

 The market comprised of the member countries of the European Union

 The Euro Markets includes countries that have fixed external tariffs and no
internal tariffs, and follow the monetary policy set by the European Central
Bank. (ECB)

 Many member states do use the Euro as their common currency, the Euro
Markets applies to all states in the EU.
 EURO MARKET
 The Euro Markets is a large single market comprised of all member
countries, allowing for more efficient trade and the centralization of
monetary policy through the ECB.

 The Euro Markets is considered a major finance source for international

trade, through the money market or Eurocurrency, euro credit and
Eurobonds.
 EURO MARKET
 The market that includes all of the European Union member countries - many of which
use the same currency, the euro.
 All tariffs between Euromarkets member countries have been abolished, and import
duties from all non-member countries have been fixed for all of the member countries.
 The Euromarkets also has one central bank for all of the member countries, the European
Central Bank (ECB).
 Also known as "the common market".