We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Monetary System - Essay Example

Comments (0)
Summary
A certain government has the right to have its own currency. By doing so, it opens its doors to the world economic scenario. This would mean that their currency is available for the exchange of other currency that is much recognized by the world market in purchasing goods and services…
Download full paper
GRAB THE BEST PAPER
Monetary System
Read TextPreview

Extract of sample
Monetary System

Download file to see previous pages... In. order to compensate with the needs, they have to buy currencies which are more recognized in the world and with this, they need a larger volume of their monetary resources in which they will have to spend tremendous amount just to meet or purchase a certain currency. By doing so, the value of their currency will be more likely affected and it may cause sudden change of the prices of basic goods and commodities. To add to that, if they do have a lesser monetary value, that certain country might resort in money in some monetary agencies in both local and international. Having this practice will ease or lessen the burden of a certain country with regards to their monetary scheme. However, if that certain debt would not be paid off immediately or given proper attention, then it would be another factor in weakening the value of a certain currency. The concerned country will further focus in paying off their debts and with this it will also need tremendous amount of money in terms of payment of the principal as well as the interest. If the concerned party would pay for their debts, it will need tremendous amount of money and the inflation rate would also rise, as the value of their money would be further weakened. ...
If this happens, the economy of that certain government would face stagnation in which their economy would rely on loans and debts made by the government. The question is, if there comes a time that this government would not be able to lend a new one, how would they be able to pay their obligations and deliver the needs of its constituents. Then, it would be more difficult for that government to establish the stability of its currency. With this, it would more likely to produce another inflation and will lead to another depreciation of the value of their currency. Also, this would also mean that they would fail to pay their current obligations and with this they not be entitled for future loans in some international monetary institutions and this would really mean a serious problem. During these stages, prices of basic commodities will rise as prices in producing goods with the use of electricity, manpower, raw materials and the likes would also have their own highs and this would really mean a serious problem for that certain country. If the cost of production were high, then the burden would also be passed to the consumer, which will affect the prices of goods. Prices of transportation, communication and some related industries would not be spared in encountering such a scenario. This would also mean that the workforce would demand for higher wages to compensate their daily needs in which sometimes lead to closure of the industries or field specialization that they are working. Without further production then there would be a little source of income for the country, there would be less tax payers, and will affect the revenue collection of the government. With this, the government would be pressured to sell ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Globalization and Implementation Plan Country Selection: Monetary System
The repercussions for US exporters, if any, will also be presented to analyze the actual scope of exporting wheat to Moroccan importers. First of all, it is necessary to understand that Morocco, although a developing nation, is a relatively stable economy; therefore, it currency known as Moroccan Dirhams (MAD/DH) is also relatively stronger.
2 Pages(500 words)Essay
Evolution of International Monetary System
According to the essay, the recent financial crisis happened due to the ignorance of challenges raised by previous international monetary systems. Effective approach to solution of the problem of crisis recurrence would be the centralized reserve mechanism. The implementations of this mechanism with IMF and the greater use of SDRs is recommended.
7 Pages(1750 words)Essay
The effects of Gold on the world monetary system
Today, modern technology has discovered more applications of gold in industries, thus reducing the amount of gold. Use of gold system policies had various achievements compared to the use of notes. In case one country fixes the relative price of gold, all the countries using the gold standard has to fix the relative price with that country’s price fix.
3 Pages(750 words)Essay
Foreign Monetary System
Through progressing towards free trade in East Asia, there are studies showing that the intra trade amongst the countries in this region is more than the countries in North America and pretty similar to the European Union. In recent years, a triangle was created with other East Asian countries exporting secondary goods to China, which they assembled into finished products and exported abroad.
3 Pages(750 words)Essay
Breton Woods Monetary System, Oil Embargo and International Political Economy
According to Friedon, J. and Martin, L. (2003, p.118), “the boundaries of IPE are not always clear”. It covers domestic trade politics, policies on FX rate, politics with the World Trade Organization (WTO), international trade of goods and capital, as well as the interaction between the domestic and international economic and political factors.
6 Pages(1500 words)Essay
International Finance: (International monetary system 1925-1960)
They promote means of payment between buyers and sellers of different nations including deferred payments. It provides the framework for ensuring liquidity without fuelling inflation and corrects the global imbalances or restricts their emergence, while facilitating an orderly payment system.
9 Pages(2250 words)Essay
Efficient International Monetary System
The international monetary system can be said to be “the institutional framework within which international payments are made, the movement of capital is accommodated and exchange rates among countries’ currencies are determined” (International finance in practice).
6 Pages(1500 words)Essay
Outlook for International Monetary System
The IMF was originally established in order to encourage international co-operation to cope with recession and protectionism on a world scale and to discourage individual countries from pursuing policies that would beggar their neighbours. The desire to improve on the international chaos of the 1930s led to the Bretton Woods Conference.
14 Pages(3500 words)Essay
Alternatives of Monetary System
In a free country, people would have several options to substitute money. Batter trade would be the immediate substitute for money in such countries. People would exchange goods for others, without the need to have a medium of exchange. A prison environment provides a suitable scenario where trade flourishes in the absence of money.
1 Pages(250 words)Case Study
Bretton Woods international monetary system
This essay focuses on the main agreements, that were reached at the conference at Bretton Woods, with main sole aim of reviewing the performance of the gold standard after the occurrence of a great depression in the US. Main rules and policies for financial and commercial relations between industrial states were established at the Bretton Woods.
2 Pages(500 words)Essay
Let us find you another Essay on topic Monetary System for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us