Essays on Bretton

Analyze and discuss the Bretton Woods Agreement and state what the agreement was for and why it was created. Include any difficulties they faced in getting society to agree with their proposal. Briefly describe the 'gold standard' evolution and collapse. Response: World War II was over. Europe and Asia was in shambles, both in term of governance as well as from an economic standpoint. In order to resurrect Europe from the state that it was in, the Bretton Woods Conference took place in July 1, 1944. Apart from replacing the gold standard with the American dollar, the conference also ...

Introduction

Casino Capitalism is a vivid description of the international financial markets, their behavior, and the economic strength they yield to various entities. The book goes on to describe the advantages of international financial markets and some of the evils associated with the same. The author, Susan Strange was a former student of the British international relations studies; she is mostly renowned for her contributions to the creation of the international political economy. Apart from her major publication of the Casino Capitalism in 1986, she also published other books, namely: States and Markets (1988), The Retreat of the State (1996) ...

1. Bretton Woods institutions are the International Monetary Fund and the World Bank, which is leading the international monetary and financial institutions, the most important element of the modern institutional structure of international monetary relations (Claude, Sharp and Egger, 2016). They got their name from the American town of Bretton Woods, where in 1944 an international monetary and financial conference at which it was decided on the establishment of these two institutions. The International Monetary Fund is an international monetary organization whose purpose is to promote international trade and monetary cooperation by establishing norms regulating exchange rates and monitor ...

The World Bank and the international monetary fund (IMF) are financial institutions within the system of the United Nations. Their main aim is to improve the living standards of the citizens of their member states. The approach used by these institutions in the achievement of their objectives is complementary. The IMF focuses on microeconomic issues while the World Bank focuses on reduction of poverty as well as long term development of the economy. This paper is set to highlight a brief history of the IMF and the World Bank, compare the two international financial institutions as well as highlight ...

According to IMF (2016), the Special Drawing Rights (SDR) is an international reserve asset created in 1969 by the IMF. Its aim was to supplement member nation’s official reserves. In the beginning, the SDR operated in the context of the Bretton Woods fixed exchange rate system. In this regards, countries that participated in the system needed to hold their national reserve either by the central bank or government in the form of gold or any other broadly acceptable foreign currency. The currency or gold was used to purchase the country's domestic currency in the foreign exchange market to ...

Q.1 What are the main assumptions and concepts associated with liberalism? Main assumptions and concepts associated with mercantilism? What are main characteristics of components of the Bretton Woods system? Liberalism mainly associates with freedom of choice and action for all rational actors in all spheres of activity. Economically, liberalism has traditionally stood for a free market with minimum Government intervention or interference, minimum barriers to entry and exit of markets, and protection of free and open competition. Mercantilism was traditionally the opposite end of the spectrum from liberalism and was opposed to liberalism influenced economics. It stood for heavy ...

International Financial Management Assessment

International Financial Management Assessment

International Monetary Fund (IMF) is an international financial organization that works closely with member countries to foster global monetary cooperation, facilitate international trade, secure financial stability, reduce poverty and promote high employment and stable economic growths. Together with the World Bank, IMF was formed in 1944 during the Bretton Woods Conference, though it formally came into existence in 1945. The organization is headquartered in Washington DC. Member countries contribute funds to the IMF’s financial pool, and any country that experiences difficulties in its balance of payment can borrow the money (Conway 2006). Macroeconomic stabilization ...

Question 1

Most developing countries have large balance of payment deficit that have accumulated over the years. This has been caused by the high level of dependence by developing countries on the outside world which is evidenced by the large proportion of imports relative to exports. There various measures can be used by developing countries to correct balance of payment deficits.

First, a country can devalue its currency. Devaluation of a nation’s currency will result in downward shift in the value of the domestic currency relative to foreign currencies. Devaluation of the domestic currency will reduce the prices of exports while increasing ...