Professional Documents
Culture Documents
The International Monetary System
The International Monetary System
Monetary System
Chapter Objective:
Chapter Two
INTERNATIONAL
FINANCIAL
MANAGEMENT
McGraw-Hill/Irwin
2-2
Evolution of the
International Monetary System
Bimetallism: Before 1875
Classical Gold Standard: 1875-1914
Interwar Period: 1915-1944
Bretton Woods System: 1945-1972
The Flexible Exchange Rate Regime: 1973Present
McGraw-Hill/Irwin
2-3
McGraw-Hill/Irwin
2-4
McGraw-Hill/Irwin
2-5
2-6
McGraw-Hill/Irwin
2-7
McGraw-Hill/Irwin
2-8
McGraw-Hill/Irwin
2-9
McGraw-Hill/Irwin
2-10
McGraw-Hill/Irwin
2-11
McGraw-Hill/Irwin
2-12
Free Float
Managed Float
No national currency
Some countries do not bother printing their own, they just use the
U.S. dollar. For example, Ecuador has recently dollarized.
McGraw-Hill/Irwin
2-13
McGraw-Hill/Irwin
2-14
The Euro
What is the euro?
When will the new European currency become a
reality?
What value do various national currencies have in
euro?
McGraw-Hill/Irwin
2-15
McGraw-Hill/Irwin
2-16
McGraw-Hill/Irwin
40.3399 BEF
Belgian franc
1.95583 DEM
German mark
166.386 ESP
Spanish peseta
6.55957 FRF
French franc
.787564 IEP
Irish punt
1936.27 ITL
Italian lira
40.3399 LUF
Luxembourg franc
2.20371 NLG
Dutch gilder
13.7603 ATS
Austrian schilling
200.482 PTE
Portuguese escudo
5.94573 FIM
Finnish markka
2-17
McGraw-Hill/Irwin
2-18
2-19
McGraw-Hill/Irwin
2-20
McGraw-Hill/Irwin
2-21
McGraw-Hill/Irwin
2-22
McGraw-Hill/Irwin
2-23
McGraw-Hill/Irwin
2-24
McGraw-Hill/Irwin
2-25
McGraw-Hill/Irwin
2-26
McGraw-Hill/Irwin
2-27