POLSCI 160 Lecture Notes - Lecture 9: Bretton Woods System, Currency Future, Exchange Rate
17 Oct 2017
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Document Summary
Choice of exchange rate regimes and currency policies. Just as in trade and finance, monetary policies create winners and losers . Within countries, there is often domestic conflict over monetary policies. Among countries, monetary relations are central to a functioning global economy. Stable relations among various national currencies allow traders and investors to make long-term plans with confidence. Institutions such as the gold standard, the bretton woods monetary system, and the european economic and monetary union (emu) created rules that facilitated international cooperation in international monetary policy. But the rules can also lead to conflict as we saw in the showdown between. Greece and the eu in the summer of 2015. For it to work, everyone must recognize and agree that a green piece of paper with george washington"s face on it is a dollar. Money i created by governments and is subject to political influence. Money serves important functions and is a medium of exchange.
