Rajasthan Technical university

Presentation
On
Evaluation Of IMS
Presented By-
Presented To- Payal Moolchandani
Dr. Ankita Birla Garvanshi Vijay
 Introduction
 International Monetary System (IMS) is a well-
designed system that regulates the valuations and
exchange of money across countries.

 Refers to the framework of rules, institutions, and

procedure that governs the exchange of currencies
among nation.
 Evolution of IMS
• Bimetallism: (Before 1875)
• Classic Gold Standard (1875-1914)
• Inter war Period (1915-1944)
• Bretton Woods System (1945-1972)
• Current IMS (1973-Present)
 Bimetallism: (Before 1875)
• Gold and Silver were used as international means of payments and
determining exchange rates.

• Presence of Bimetallic countries was must

• Collapsed: Gresham’s Law (Bad Money drives out Good Money)

Bimettalic country (France, Italy, switzerland etc)

 Classic Gold Standard (1875-
1914)
 The Gold Standard was the dom inant
international m onetary system from the
late 19th century until World War 1.

 Under this system , currencies were

convertible into gold at a fixed rate.

 The gold standard collapsed during the

Great Depression and was replaced by a
system of fixed exchange rates.

Collapsed- unconscious or suddenly fall down

 Interwar Period (1915-1944)
• During this period, currencies were allowed to fluctuate over a fairly wide range in
terms of gold and each other.

• Increasing fluctuations in currency values became realized as speculators sold short

weak currencies.

• The US adopted a modified gold standard in 1934.

• During WWII and its chaotic aftermath the US dollar was the only major trading
currency that continued to be convertible.
 Bretton Woods System (1945-
1972)
• The Bretton Woods System was established after
World War II to prom ote international economic
stability.

• Under this system, the US dollar was pegged to

gold at a fixed rate.

• However, the system collapsed in the 1971 due to

inflation and currency speculation.
 Current IMS (1973-Present)

• Floating exchange rates have been the norm

since the collapse of the Bretton Woods
System.

• Exchange rates determined by market forces

fixed by governm ents.

• System provided greater flexibility but has also

led to increased volatility and currency crises.
 Paper Money

Document representing money

such as bank notes, promissory
notes, bill of exchange, cheques
etc.
 Modern Paper Currency
• Today, paper currency used in every country in the
world.

• It include a variety of security features, such as

watermarks and holograms.

• Some countries have even begun to experiment with

digital currencies, which could potentially replace
paper currency in the future.
Thank
You