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...

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