History Of Bretton Woods System And Jamaica - 1436 Words

HISTORY OF BRETTON WOODS SYSTEM AND JAMAICA BRETTON WOODS SYSTEM The Bretton Woods System was formed as a result of the collapse of the Golden Standard and The Great Depression. These closely related events prompted the need to establish an international monetary system, whose main aim was to revive the economies of the Post World War as well as fostering international economic relations that would end inter-war conflicts. Furthermore this historic event took place in July 1944 in New Hampshire whereby forty four nations consisting of 730 delegates came up with global institutions to solve these problems. In addition there were key individuals who played an important role in this process. First and foremost the United States Treasury Secretary Henry Morgenthau, Harry Dexter White who was the Chief Economic Advisor and lastly British Economist John Maynard Keyes. Both Keynes and White according to (about education, n.d.) believed in the â€Å"creation of a system of exchange rates that would avoid competitive devaluation that had been marked in the 1930’s but allow some adjustment in their value if economic fundamentals were judged to require it†. Although Keynes and White had believed in the same fundamentals or rather the same core values, they both took different approaches towards how these institutions would be implemented. On one hand Keynes believed in establishing a global central bank, termed as the ‘clearing union’ (Ghizani, n.d.) That would be used to settle imbalances.Show MoreRelatedInternational Monetary System5852 Words   |  24 PagesINTERNATIONAL MONETARY SYSTEM MULTULATERAL DEVELOPMENT BANKS Meaning International Monetary System refers to the system prevailing in world foreign exchange markets through which international trade capital movements are financed exchanges rates are determined. MNCs operate in a global market, buying/selling/producing in many different countries. For example, GM sells cars in 150 countries, produces cars in 50 countries, so it has to deal with hundreds of currencies. What are the mechanicsRead MoreInternational Monetary System5858 Words   |  24 PagesINTERNATIONAL MONETARY SYSTEM MULTULATERAL DEVELOPMENT BANKS Meaning International Monetary System refers to the system prevailing in world foreign exchange markets through which international trade capital movements are financed exchanges rates are determined. MNCs operate in a global market, buying/selling/producing in many different countries. For example, GM sells cars in 150 countries, produces cars in 50 countries, so it has to deal with hundreds of currencies. What are theRead MoreInternational Aid Or Development Assistance Essay2412 Words   |  10 Pagesdefinitions. 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In the most extreme for m, chronic price increases become hyperinflation, causing the entire economic system to break down. The hyperinflation that occurred in Germany following World War I, for example, caused the volume of currency in circulation to expand more than 7 billion times and prices to jump 10 billion times during a 16-month period before NovemberRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesBrier, and Roy Rosenzweig Also in this series: Paula Hamilton and Linda Shopes, eds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. 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