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Chapter Outline
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The International Monetary System

Opening Case
Argentina's Monetary Crisis

Introduction

The Gold Standard
Mechanics of the Gold Standard
Strength of the Gold Standard
The Period between the Wars, 1918-1939
The Breton Woods System
The Role of the IMF
The Role of the World Bank
The Collapse of the Fixed Exchange Rate System

The Floating Exchange Rate Regime
The Jamaica Agreement
Exchange Rates since 1973
Country Focus
The U.S. Dollar, Oil Prices, and Recycling Petrodollars

Fixed versus Floating Exchange Rates
The Case for Floating Exchange Rates
The Case for Fixed Exchange Rates
Who Is Right?
Exchange Rate Regimes in Practice
Pegged Exchange Rates
Currency Boards
Crisis Management by the IMF
Financial Crises in the Post-Bretton Woods Era
Mexican Currency Crisis of 1995
The Asian Crisis
Evaluating the IMF's Policy Prescriptions
Country Focus
Turkey and the IMF

Implications for Managers
Currency Management
Business Strategy
Management Focus
Airbus and the Euro
Corporate-Government Relations
Chapter Summary

Critical Thinking and Discussion Questions

Research Task

Closing Case
China's Managed Float







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