The International Monetary System Essay

740 words - 3 pages

Throughout history the international monetary system has undergone profound changes and constant evolution. During the sixteenth to the mid-eighteenth century Mercantilism was the predominant system in which power and increased wealth mostly gold, silver and raw materials from the colonies. It was a period in which the "wealth was power, and power was wealth."
Followed mercantilism began the period of industrialization or the British Industrial Revolution. This period was characterized because Britain was the hegemonic, the first country to industrialize. In the early nineteenth century Britain had already surpassed the gains elsewhere, production and efficiency.
Bretton Woods Conference in 1944 and the creation of the World Bank (WB), the International Monetary Fund (IMF), and the World Trade Organization (WTO) had changed the world’s economic system. The establishment of these organizations was the first effort by several countries to build an economic stability system not only for their national economies but also intended for the international markets. Nevertheless they had some successes in their goals, and the spread of globalization was one of the most notorious results, the conditions in the economic, political and social arena has changed vastly throughout the years, that the work of these organizations has become very controversial, and several people blames them for the way in which the present monetary system performs.
The Globalization process, combined with the impact of the liberal economic ideas has outlined the way in which the international monetary system is these days. Since its early stages, the occurrence of Globalization has been sustained by liberals’ ideals from those like John Locke, Adam Smith, and David Ricardo, whom really understood that in order to have political stability the need for a free economic market needs to be present, where the state was only in charge of the public goods of its citizens. However, Globalization has not been what many expected. This process was intended to provide development and new opportunities to many people, especially in the developing countries. In many cases, the process of Globalization has worked. With Globalization has increased the opened up of the international trade market, that permits countries everywhere to interact and growth faster economically. Also, the globalization has made more efficient the communications and has increased the access to different services, better...

Find Another Essay On The International Monetary System

Role of the International Monetary Fund

2297 words - 9 pages trade, and make resources available to countries in need and to create multilateral payment systems. The main objective of the Bretton Woods system, where the International Monetary Fund was founded, was to secure peace and maintain it. The depression of the 1930’s left the memories of unemployment, hyperinflation, unstable exchange rates, and recession something the founders did not want to see again in the future. Since its formation the world

The International Monetary Fund's Advantages and Shortcomings

2226 words - 9 pages The International Monetary Fund (IMF) is an organization of international that was started in 1944 at the Bretton Woods Conference and it officially was created by 29 members of countries on December 27, 1945. A fixed exchange rate system set up in Bretton Woods Agreement in which each country the IMF par value for the currency based on gold and the U.S. dollar. By reason of the dollar was fixed at $ 35 per ounce of gold, is also the same par

Financial Crises and the International Monetary Fund

3043 words - 13 pages the both domestic and international economies, they became “too big to fail” Institutions that are “too big to fail” are big enough to cause systemic risk, the risk that the financial system as a whole would cease to function smoothly . Because the government would not be willing to allow systemic risk, these institutions that are “too big to fail” have almost implicit guarantees. These guarantees left the potential that these entities would take

The International Monetary Fund and Balance of Payments

2057 words - 9 pages stability, improving trade internationally, maintaining global growth, and decreasing poverty worldwide (IMF, n.d.a). According to the IMF (n.d.b), it compiles and provides varied information, including statistical data regarding international reserves, external debt, and the portfolio investment of selected countries. In order for the IMF to accomplish its primary task, safeguarding the global system, it must maintain a record of its member country

Triumphs and Tragedies of the International Monetary Fund & World Bank

1946 words - 8 pages Dexter White, who opted for a system based on the relatively free movement of goods with the dollar as the international currency2. In the end, the IMF was established 'to promote international monetary cooperation by maintaining fixed exchange rates among the currencies of different nations.'3 To accomplish this, the Fund was to make short-term loans to nations which had temporary balance of payments deficits (i.e., when the net imports of a nation

Security and The International System

790 words - 3 pages the foundation of Maslow’s hierarchy of needs and the foundation of the international system. Military force, alliances, espionage, propaganda, and economic and diplomatic pressure are all instruments for the progression of a state actor’s security. With new powers developing in Southern and Eastern Asia, a depopulation and monetary crisis of European powers, and military cutbacks in the only global hegemony, the convergence of the world under the security of the United States is reversing course. As such, these tools will only become more important in a coming multi-polar world order.

The International Organ Trading System

1001 words - 5 pages (2) combat criminal trade in human organs” ( The shortage of viable and salvageable organs has led to the evolution of the international organ trading system, and the list only continues to grow. Factors like the 1968 Uniform Anatomical Gift Act, which prohibited cadaveric organ donation without the decedent’s written authorization or their families consent, persistently cause the waitlist to grow. This trade has

The World Bank and the International Monetary Fund, Interchangeable But Different

805 words - 4 pages Secretary of Treasury must turn to Congress every couple of years to ask what an appropriate amount of funds is that can be given to the World Bank on behalf of the United States. The International Monetary Fund was created to stabilize exchange rates, supervise reconstruction of the world’s international payment system and uphold the international trade policies with a main goal of financial stability. One of the IMF’s main goals is to prevent local

The International System and a Nuclear World

1086 words - 5 pages Since the dropping of the atomic bomb on Hiroshima and Nagasaki in 1945, the international world has become increasingly concerned with the development and potential use of destructive nuclear weapons. The Cold War-era saw these concerns at their height, as the US and the Soviet Union vied for superiority in the international system. The fall of the Soviet Union in the 1990s seemed to mark an end to the most concerning chapter in the history of

Is the International Tax System Legitimate?

3072 words - 13 pages tackling high level of secrecy through a mechanism to disclosure of such information. However, the question of legitimacy of any international law or system becomes central concern nowadays as it poses a value whereby something or someone is recognized and accepted as right and proper. Evans (2012) also claims that power rests on legitimacy. The discussion of legitimacy may vary according to various aspects, but they shares three basic elements

The goal of this paper is to discuss the origin and role of the International Monetary Fund

1367 words - 5 pages The goal of this paper is to discuss the origin and role of the International Monetary Fund. The International Monetary Fund is a specialized agency of the United Nations system that was set up by a treaty in 1945 in order to help improve the world economy. The IMF's headquarters is located in Washington, D.C.; 184 worldwide country representatives govern it. The IMF works for global wealth by promoting the balanced expansion of world trade

Similar Essays

The International Monetary Fund Essay

2495 words - 10 pages and short-term loans when a member nation encounters financial difficulty.” World Book, Inc 1.2 The history of the International Monetary Fund (IMF). The International Monetary Fund was designed during World War II by men whose worldview had been shaped by the Great War and the Great Depression. Their views on how the post-war international monetary system should function were also shaped by their economics training and their nationalities

The European Monetary System Essay

2077 words - 9 pages . Fall 90. p455· Hamwi, I.S. The exchange rate mechanism's in the European Monetary System. "International Advances in Economic Research" Aug95. p212.· Currencies on the verge of a nervous breakdown. "Economist" 5/2/92. p97.· Eichengreen, Barry. Mending Europe's currency system. "Economist". 6/5/93. p89· Lawday, David. Capsizing currencies. "US news & World Report". 8/16/93. p43

The Monetary System Essay

614 words - 3 pages many husbands have sailed the ocean to establish a home and a trade in hopes of one day bringing their families to join them in new wealth? And how many young souls, with only one hope for a bright future, have bartered themselves for passage to America, pursuing the tales of a golden shore across the sea? What Mr. Franklin indicates as a consequence of our current monetary system, will not happen until the freedom and promise of America is extinguished.

The International Monetary Fund (Imf) Essay

2616 words - 11 pages The International Monetary Fund, is an international organization established in 1945 as part of the United Nation system. Its creation was conceived at Bretton woods, to “…regulate the rates at which currencies were exchanged among member countries; and it would help ensure international stability by making loans at times of crisis in member countries’ balance of payments.” Since its creation, the IMF have gain enormous power in