Scribd will begin operating the SlideShare business on September 24, 2020 International monetary system Also unstable economies such as many of the African and South American nations may drag down the rest of the world due to the monetary tie. International Monetary Fund. Rather than businesses having to set up separate accounting systems, banks, etc. 1 month ago Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com.The information in this section is based on Md.Azim Ferdous’ published work Over the past one-hundred years, some very important events have occurred that summarise and relate to the history of the international monetary system. Before the European Union was established, many conditions had to be met by member countries, particularly surrounding each country’s economic wellbeing and monetary stability. , An example of this is international debt, its cost would be the same in the future as the present. Economic Advantages And Disadvantages Of A One Global Currency Economics Essay. Implications for consumers would be lower prices and ease of travel across countries. International Monetary System International monetary systems are sets of internationally agreed rules, conventions and supporting institutions, that facilitate international trade, cross border investment and generally there allocation of capital between nation states. To get a cheap price or large amount. for transactions in foreign currencies, a single currency would make it simple to operate from a single central accounting office and use a single bank. To end on a personal note, I believe that in time the world will achieve not only a monetary union but a complete social and cultural integration (even though there is beauty in diversity) where one language, one culture, possibly one belief system will be the case and hopefully the dependency on each other will lead to a more peaceful, harmonious world.Essays, UK. Before we could even think about receiving the benefits of a Gold Standard, many implementations around the globe would have to take place. Public and political sovereignty over the opinion of direction of monetary policy in their country would cease to exist. At the appropriate rate, currency could be exchanged for actual gold at commercial banks. As Paul Nathan states in his book This final section of the report will discuss the advantages and disadvantages of having one world central bank, one single world currency and its implementation of monetary policy based mostly on information from joint Waikato University Presentation The idea of a world bank and currency has been proposed many times over by visionary economists, John M. Keynes, for example, was one of them. The era of the Gold Exchange Standard was born. At Bretton Woods, New Hampshire, a meeting was held by the allied powers and two proposals made. This was the end of the Gold Standard; it could not operate in the critical environment the world was in.As World War II came to an end it became clear that action needed to be taken, a new monetary system was in order, one that would replace the Gold Standard that had broken down in the Inter-War Period and effectively handle the Post-War Period. Your message goes here Now customize the name of a clipboard to store your clips. The world central bank would have to impose many similar conditions and requirements that the world has to reach before being able to implement a system that will remain sound. International monetary system The global network of government and commercial institutions within which currency exchange rates are determined. Another advantage is that nations will be unable to manually manipulate or fix exchange rates in order to be more competitive (China sets their rate low to promote exports for example)so competition based on efficiency will be encouraged. That is, it could conduct monetary policy for the globe via the one single currency, it could monitor governments or central banks of all nations according to their agenda and direction, it wouldn’t necessarily need foreign exchange reserves as their would only be one currency in question and lastly it would be the issuer of this single currency possibly via the existing central banks around the globe.

The information in this section is based on Md.Azim Ferdous’ published work History of International Monetary System from the University of Dhaka, and Dr.Kenneth N. Matziorinis’ published work A Brief History of the International Monetary System from McGill University (Montreal, Canada) as well as other relevant articles and readings. Nations with opposing economic situations such as one enduring a strong movement of activity posing the risk of inflation and being helped through money supply manipulation may put at huge risk smaller economies and send them into recession and vice versa.