INR 3502 Lecture Notes - Lecture 2: International Monetary Fund, Pound Sterling
Document Summary
Class notes: basics of imf and world bank. -international monetary fund (look at overview in book) ~important because the bretton woods agreement was about fixing exchange rates to gold and maintain it at a certain level. ~e(cid:454)(cid:272)ha(cid:374)ge rate: ho(cid:449) people (cid:448)alue a (cid:272)ou(cid:374)tr(cid:455)"s (cid:272)urre(cid:374)(cid:272)(cid:455) (cid:449)ith respe(cid:272)t to a(cid:374)other currency. ~e(cid:454)) (cid:862)our e(cid:454)(cid:272)ha(cid:374)ge rate (cid:449)ill re(cid:373)ai(cid:374) o(cid:374)e british pou(cid:374)d to . (cid:1008)(cid:1009)(cid:863) ~made sure the govt. in particular countries could buy its own money--its own currency. ~fa(cid:272)ilitates i(cid:374)ter(cid:374)atio(cid:374)al trade i(cid:374)(cid:448)est(cid:373)e(cid:374)t (cid:271)e(cid:272)ause (cid:272)ou(cid:374)tries do(cid:374)"t ha(cid:448)e to (cid:449)orr(cid:455) a(cid:271)out changing exchange rates negatively impacting certain investments they made. ~world bank: ga(cid:448)e (cid:373)o(cid:374)e(cid:455) for spe(cid:272)ifi(cid:272) proje(cid:272)ts for (cid:272)ou(cid:374)tries to (cid:271)uild (cid:271)ridges if the(cid:455) did(cid:374)"t have funds to do so. ~the u. s. and many other countries went away from the gold standard and fixed exchange rate; (cid:449)e(cid:374)t to a floati(cid:374)g e(cid:454)(cid:272)ha(cid:374)ge rates; (cid:271)e(cid:272)ause the imf did(cid:374)"t ha(cid:448)e the (cid:272)leari(cid:374)g house fu(cid:374)(cid:272)tio(cid:374); the(cid:455) (cid:374)o(cid:449) are (cid:862)le(cid:374)ders of last resort(cid:863)
