Professional Documents
Culture Documents
MOSCOW 2018
CONTENT
Introduction
Parisian
Genoese
Bretton Woods
Jamaican
Conclusion
INTRODUCTION
Monetary System is defined as a set of policies, frameworks, and institutions by which the government creates
money in an economy. Such institutions include the mint, the central bank, treasury and other financial
institutions, due to which cash payments are made within the global economy.
Genoese
Bretton Woods
CURRENCY
SYSTEMS Jamaican
THE PARISIAN MONETARY SYSTEM
First international monetary system was introduced in the late
XIX century and it is known in history as the "gold standard".
Legally it was framed at the International Conference in Paris in
1867. The Conference recognized gold as the only form of world
money.
All national currencies had the fixed content of gold.
For example, from 1821 one pound sterling had a gold content equal to
7.322385 grams of gold,
1 Deutschemark -0.385422 grams of gold (from 1873).
The exchange rate was determined by the ratio of the gold content of
currencies. In this case, it was 1:20,3.
GOLD STANDARD AND ITS COLLAPSE
At the end of 19th century, the part of gold in the
It was the regime of freely floating exchange rates
money supply significantly decreased and credit
between gold.
money of exchange gradually force the gold out of
According to this system: circulation.
currencies are freely convertible into gold; At the beginning of World War I, the gold standard
collapsed because of the impossibility to respond to
gold bullion freely exchanged for coins;
expanded scopes of both economic relations and
gold freely exported, imported and sold in the conditions of regulating of the market economy.
international markets, that is gold markets and
currency markets were interdependent;
all countries maintained strict correlation between
their gold reserves and the amount of money in
circulation.
GENOESE MONETARY SYSTEM
In 1922, the second world currency system, was legally formalized due to the interstate
agreement at the Genoa conference, after a period of currency chaos that arose as a
result of the First World War.
It was based on a gold-exchange standard, which was based on gold and on the leading
currencies convertible into gold.:
The British pound sterling
The French franc
The US dollar
Characteristics of the Genoese monetary system:
gold parities were saved. Currency conversion into gold was carried out through
foreign currency;
freely fluctuating of exchange rates;
the exchange regulation was in the form of international conferences and meetings.
GENOESE MONETARY SYSTEM COLLAPSE
From 1922 to 1928 the relative exchange rate stabilization was observed in the world, but it has been
undermined by the global economic crisis of 1929 -1933.
Due to the crisis the gold-exchange standard has collapsed.
The exchange rate of several currencies decreased by 50 - 84%, the accumulation of gold by individuals
increased, external payments stopped, a lot of "hot" money, which spontaneously move from one
country to another in order to obtain profits, were formed. It caused the currency war, where the
currency intervention, the currency dumping, currency restrictions and currency blocks were used.
There were a new economic crisis and a mass devaluation of currencies in 1937. There was none of a
stable currency before the Second World War.
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REFERENCES
https://ebrary.net/7292/economics/evolution_world_monetary_system
https://studopedia.su/2_26536_DEVELOPMENT-OF-WORLD-MONETARY-SYSTEM.html