Chapter 11: The Global Monetary System

refers to the institutional arrangements that govern exchange rates

the gold standard

mechanics of the gold standard
strength of the gold standard 
the period between the wars 1918-1939 
the Bretton Woods System
the role of the IMF 
the role of the World Bank 
the Collapse of the Fixed Exchange Rate System
the Floating Exchange Rate Regime 
the JAMAICA AGREEMENT
Exchange rates since 1973

the role of the IMF 

The Bretton Woods agreement established a fixed exchange rate regime that helped
to control inflation, but also limited flexibility. To address this, the IMF:  The
International Monetary Fund (IMF) is an international organization that promotes
international monetary cooperation and economic growth. Its primary role is to
provide economic policy advice, financial assistance, and technical assistance to its
member countries, particularly those facing balance of payments difficulties. The IMF
also monitors global economic developments and plays a key role in promoting
international economic cooperation and coordination. Overall, the IMF's goal is to
help ensure the stability and growth of the global economy.
the role of the World Bank 
The World Bank is an international organization that provides loans and grants to
developing countries to support economic development. Its main objective is to
reduce global poverty by financing infrastructure projects, such as roads, bridges,
and water supply systems, as well as social programs, such as education and
healthcare. The bank offers low-interest loans to risky customers under the IBRD( 
International Bank for Reconstruction and Development) and provides IDA
International Development Association loans to the poorest countries, which have up
to 50 years to repay at an interest rate of less than 1 percent a year, with grants and
interest-free loans also available. 
the Floating Exchange Rate Regime 
The floating exchange rate regime that followed the collapse of the fixed
exchange rate system was formalized in January 1976, when IMF members
met in Jamaica and agreed to the rules for the international monetary system
that are in place today
the JAMAICA AGREEMENT
The Jamaica meeting in 1976 made changes to the IMF's Articles of Agreement to
accommodate floating exchange rates. 
 The agreement allowed for floating rates and permitted IMF members to enter
foreign exchange markets to balance speculative fluctuations. 
 Gold was no longer used as a reserve asset, and the IMF returned its gold
reserves to members while allowing them to sell their own gold reserves at
market prices. 
 The total annual IMF quotas were increased to $41 billion, and non-oil-
exporting, less developed countries were given greater access to IMF funds. 

These changes have since been expanded to include 188 countries with a total quota
of $767 billion.