History of the International Mone tary System
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Pro 18"' century 1821 1918 1!120 )931 19J1· 193!J l!MA
INTERNATIONAL BANK
FOR RECONSTRUCTION
AND DEVELOPMENT
Makes hard loans:
$20.6 billion in new
loans in 2012
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T T T
INTERNATIONAL INTERNATIONAL MULTILATERAL
DEVELOPMENT FINANCE INVESTMENT
Assoc1ATION CORPORATION GUARANTEE AGENCY
Offers soft loans: Promotes private Provides political
$14.8 b1ll1on in new sector development: risk insurance:
loans In 2012 $15.5 billion in new $2.7 billion of new
loans and equity in 2012 insurance in 2012
Objectives of the IMF
• To promote international monetary cooperation
• To facilitate the expansion and balanced growth of international trade
• To promote exchange stability, to maintain orderly exchange
arrangements among members, and to avoid competitive exchange
depreciation
• To assist in the establishment of a multilateral system of payments
• To give confidence to members by making the general resources of
the IMF temporarily available to them and to correct maladjustments
in their balance of payments
• To shorten the duration and lessen the degree of disequilibrium in the
internation al balance of payments of members
•
History of the International Monetary System
Smithsonian Flexible/Floating Louvre Accord - GS Persian Gulf
End of Bretton
Conference (Group Exchange rate (US, Japan, UK, hostilities
Woods System
of Ten) France, Germany)
1111
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\1 I OIIII
1971 Conference, !971 onwards 1987 1990
1971
Washington
Currency fluctuations: Implications for
Internationa I business
Value of domestic currency increases, ....
Major components of the BOP Accounting
System
• The BOP accounting system is a double-entry bookkeeping system designed to measure and record all economic
transactions between residents of one country and residents of all other countries during a particular time period.
• It helps policymakers understand the performance of each country's economy in international markets.
• It also signals fundamental changes in the competitiveness of countries and assists policymakers in designing
appropriate public policies to respond to these changes.
Major components of the BOP Accounting
System {Contd)
1. CURRENT ACCOUNT
Export/Import
(Goods/Merchandise)
Gifts
Export/Import
(Unilateral
(Services)
transfers)
Investment Income