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The International Monetary System




After you have read this chapter you should:
  1. Be familiar with the historical development of the modern global monetary system.


  2. Discuss the role played by the world bank and the IMF in the international monetary system.


  3. Be familiar with the differences between a fixed and floating exchange rate system.


  4. Know what exchange rate regimes are used in the world today and why countries adopt different exchange rate regimes.


  5. Understand the debate surrounding the role of the IMF in the management of financial crises.


  6. Appreciate the implications of the global monetary system for currency management and business strategy.





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