scholarly journals Money Makes the World Go Round

1996 ◽  
Vol 26 (103) ◽  
pp. 197-225 ◽  
Author(s):  
Michael Heine ◽  
Hansjörg Herr
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Economic System ◽  
New Developments ◽  
The Real ◽  
Bretton Woods ◽  
Monetary System ◽  
The World ◽  
Economic Sphere ◽  
The Stability

The mticle critizises the marxist thesis, that the monetary system has been broken frcc from the real economic sphere. But the authors agree that there are quantitative and qualitative new developments in the financial markets, particularly since the Bretton-Woods-system has col!apsed. These developments are described and analysed. lt is discussed, if these changcs threaten the stability of the economic system. The mticle concludes with some proposals for a new monetary policy.

The Principles and Operation of the Bretton Woods International Monetary System in the Years 1944–1971. The Reasons for Its Collapse

2016 ◽  
Vol 8 (2) ◽  
pp. 0-0
Author(s):  
Zbigniew Klimiuk
Keyword(s):  
International Trade ◽  
World Economy ◽  
International Monetary System ◽  
The United States ◽  
International Liquidity ◽  
Bretton Woods ◽  
Monetary System ◽  
The Us ◽  
The World ◽  
The Stability

The subject of the article is an analysis of the role of the US dollar in the development of international trade and the world economy during the period of the Bretton Woods monetary system (1944–1971). The international monetary system existing at that time was, in principle, a gold exchange standard based mainly on the national currency of the United States. However, a relatively small role was also played by other currencies including, in particular, the pound sterling. It should be noted that the Bretton Woods rules did not match the conditions in the world economy which emerged after World War II. The main areas of criticism concerned such assumptions as the maintenance of an official fixed price for gold, or a too narrowly interpreter postulate for the stability of the exchange rate. On the other hand, it should be noted that the introduction of the stability of exchange rates and the abolition of restrictions on payments were fundamentally sound decisions. They led in fact to the minimisation of a risk inherent in international trade and its rapid growth. One should also emphasise the fact that from the very beginning, in the international gold based monetary system there was an internal contradiction (paradox), which eventually led to its collapse. This was namely the fact that the growth in world trade created a growing demand for international liquidity. This was tantamount to a necessity to maintain a permanent balance of payments deficit in respect of the country whose currency was considered the key currency. At the same time, the growing volume of the US currency resulted in an increasing crisis of confidence in the dollar.

scholarly journals Money Decentralization under Direct Democracy Procedures. The Case of Classical Athens

2021 ◽  
Vol 14 (1) ◽  
pp. 30
Author(s):  
Emmanouil-Marios L. Economou ◽  
Nicholas C. Kyriazis ◽  
Nikolaos A. Kyriazis
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Direct Democracy ◽  
Hellenistic Period ◽  
International Currency ◽  
Monetary System ◽  
Mediterranean World ◽  
The Stability ◽  
City State

By analyzing the case of Athens during the Classical period (508-323 BCE) the main thesis of this paper is that under direct democracy procedures and the related institutional setup, a monetary system without a Central Bank may function relatively well. We focus on the following issues: (i) Τhe procedures of currency issuing in the Athenian city-state, (ii) why the Athenian drachma become the leading international currency in the Mediterranean world (iii) how and towards which targets monetary policy without a Central Bank was possible (iv) defining the targets of monetary policy and the mechanisms for its implementation (v) the role of money in the economy (vi) the issue of deficit spending (vii) the reasons of the replacement of the Athenian drachma as a leading currency by others from the Hellenistic period onwards (viii) the correlation of our findings regarding the decentralized character of monetary policy in Classical Athens to today’s realities, such as the issue of cryptocurrencies. Our analysis shows that monetary policy without a Central Bank was possible, with its foremost aim being the stability of the currency (mainly, silver coins) in order to enhance trust in it and so, make it an international currency which could outcompete other currencies. Since there was no Central Bank like today, monetary policy decisions were taken by the popular assembly of citizens in combination with the market forces themselves.

scholarly journals GEOECONOMIC ASPECTS OF THE MONETARY GLOBALIZATION

2020 ◽  
Vol 19 (Vol 19, No 3 (2020)) ◽  
pp. 395-408
Author(s):  
Oleksandr SHAROV
Keyword(s):  
Economic Globalization ◽  
International Level ◽  
Historical Process ◽  
Bretton Woods ◽  
Monetary System ◽  
The World ◽  
Further Development ◽  
Over Time ◽  
Qualitative Changes

Author defines monetary globalization and examines the historical process of spreading money and cash nexus across the globe. It is stated that money developed almost simultaneously in three great civilizations (Europe, India, China), but over time the Hellenistic form of money absorbed and universalized all other forms of money. The author examines in detail the process of distribution of metallic and then credit form of money and their impact on economic globalization. All these processes occurring both in the markets of separate countries or small regions and at the international level (where money started to act as global currency almost immediately after its appearance) constitute the essence of the monetary globalization. The author dwells on the post-Bretton Woods period of development of the World Monetary System, believing that the extensive phase of monetary globalization has come to an end at this stage and its further development will be caused by fundamental qualitative changes.

8. The Evolution of the International Monetary and Financial System

2016 ◽  
Author(s):  
Eric Helleiner
Keyword(s):  
Exchange Rate Regime ◽  
Financial System ◽  
Late Nineteenth Century ◽  
United States Dollar ◽  
Bretton Woods ◽  
Monetary System ◽  
Floating Exchange Rate ◽  
Post War ◽  
The Stability ◽  
Monetary Order

This chapter examines the evolution of the international monetary and financial system since the late nineteenth century. It first considers how changing political circumstances, both internationally and domestically, during the interwar years undermined the stability of the globally integrated financial and monetary order of the pre-1914 period. It then looks at the Bretton Woods monetary system created in 1944 for the post-war period, along with the causes and consequences of challenges to the Bretton Woods order which have emerged since the early 1970s with the globalization of financial markets, the collapse of the gold standard, and the move to a floating exchange rate regime among the major economic powers. The future of the United States dollar is also assessed.

At a Glance… The World Economy

2014 ◽  
Vol 229 ◽  
pp. F2-F2
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Euro Area ◽  
World Economy ◽  
Financial System ◽  
List Type ◽  
Real Activity ◽  
The World

Following growth of 3.1 per cent in 2013, the world economy will grow by 3.5 per cent in 2014 and 3.7 per cent in 2015.The pace of recovery remains slow and uneven; much of the Euro Area in particular remains very depressed.Key risks include deflationary pressures in the Euro area; the Chinese financial system; and the conflicting pressures on monetary policy from very buoyant financial markets and relatively weak real activity.

scholarly journals Stock Performance When Facing the Unexpected

2020 ◽  
Author(s):  
Alfonso Dufour
Keyword(s):  
Financial Markets ◽  
Economic System ◽  
Cash Flows ◽  
Stock Performance ◽  
Systemic Risks ◽  
Asset Values ◽  
The World ◽  
End Of The World ◽  
Future Cash Flows ◽  
Flexible Models

The COVID-19 crisis has had enormous costs. The effects on financial markets were exacerbated by panic, fear of the unknown, fear of the end of the world as we knew it. This panic obfuscated our ability to make rational predictions on future cash flows and asset values. Overall though, our economic system is bouncing back. We can learn from this experience and build more flexible models which can help us to better manage severe systemic risks.

scholarly journals SISTEM MONETER DALAM PERSPEKTIF EKONOMI ISLAM

ALQALAM ◽  
2012 ◽  
Vol 29 (1) ◽  
pp. 141
Author(s):  
ZAINI IBRAHIM
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Economic System ◽  
Global Financial Crisis ◽  
Market Price ◽  
National Income ◽  
Monetary System ◽  
Goods Market ◽  
The Interest Rate

In many economic literatures, economy is divided into two sectors, real sector which covers seroice market and goods market, and monetary sector which consists of money market and equity market. In a part of economic system, monetary that runs in a country will affect the economic rate. Monetary economy can be applied in a polity, called monetary policy. In a conventional discussion, a monetary policy is run in order to reach the increase of national income, to stabilize market price, and to control the inflation rate. To get the goal of that macro-economy, the interest rate is used, in which it becomes the weakness of conventional monetary system. The use of interest rate, furthermore, has caused the economic crisis, indeed global financial crisis. In term of new economic system needs, Islamic monetary system riflers a solution to overcome financial crisis. The riffered system is asset based transaction, free of interest, avoidance of transactions containing speculation (maisir) and uncertainty (gharar). Moreover, it also uses stable curencies, i.e. dinar and dirham. Keyword: Monetary system, interest rate, fiat monry, dinar, dirham.

scholarly journals The Instability of Economic System and the Errors in Economics

2019 ◽  
Vol 3 (2) ◽  
pp. p162 ◽  
Author(s):  
Giovanni Antonio COSSIGA
Keyword(s):  
Monetary Policy ◽  
Economic System ◽  
Stable Condition ◽  
Unstable State ◽  
Economy Growth ◽  
The World ◽  
Smoldering Fire ◽  
Private And Public ◽  
Weak Growth ◽  
Stable Economy

The instability of an economic system is an almost normal condition, because it’s widespread. But it is a distortion if compared to the path of a stable economy. A stable economy follows a straight growth, with a steadily rising slope. In the world of instability, however, the economy follows a sinuous path, because the recession and the monetary signals come into play. Inflation and deflation are only the messengers of the unstable state and also signals to change course. They are ectoplasms created by the world of instability, to stimulate the return to the stable condition. A full frontal against the messengers makes no sense. Instead we need to hold the message and eliminate from the management of the economy those errors which derail from the compatible path and in parallel from the environment around us. The derailment is not definitive, because the events of the unstable sub-world show that the forces acting therein (the recession and the speculative excess) and the monetary messengers have the function of correcting the errors. The cycle of the conjuncture and, in extreme ratio, the speculative excesses are the correction tools, to bring the economic system back to the stable condition. Basically, the recession is a sequential intervention curbing the economy growth, to rebalance the systems’ potential according to the distinct but coherent course followed by our planet. The inflation is the messenger that measures the intensity of the gap between the two levels of development: the humanity and our natural environment. The deflation is instead the measure of the excesses suffered by the economy for the improvident idea to push the economy development beyond the limits imposed by compatibility. The deflation is the measure of excesses in terms of private and public indebtedness, and cheap credit. It is accompanied by a weak growth, which also requires new debt and money availability. The process, if not interrupted, starts the phase of misleading and doped speculation, which will end with a serious economic depression and new social troubles. We should not fight these instability monsters. We need to prevent them, instead. Our world seems to be running towards a new speculative fire. Trying to force the exhausted systems’ course is to light up the smoldering fire. The economy needs a period of calm to heal and reabsorb excesses. Monetary policy must raise up its guard, while fiscal policy must renounce the belief that we have the tools to tame the conjuncture cycle and to submit it to the wishes of our unscrupulousness.

scholarly journals China’s Experience in the Process of Financial Globalization

2021 ◽  
pp. 194-205
Author(s):  
Ekaterina Ryaskova
Keyword(s):  
Financial Markets ◽  
World Market ◽  
Financial Globalization ◽  
Capital Liberalization ◽  
Systemic Risks ◽  
The World ◽  
The Stability ◽  
The Moment ◽  
National Systems ◽  
Positive Results

The article examines the country’s strategy to “enter” the process of financial globalization. China’s embrace of globalization differs from many countries. In globalization processes, the financial component began to play a key role, giving multidirectional impulses to the development of the world economy. Financial globalization has engulfed all developing countries, which began to deregulate financial markets and promote capital liberalization, exposing national systems to systemic risks. The author proves the nature of China’s policy of “entering” the process of financial globalization, alternative from other countries, and describes the stages of introducing restrictions on the flows of speculative capital, the development of the stock market, as well as step-by-step decisions of the authorities to liberalize the conditions for the entry of foreign capital into the country. The article proves that the “moderate” nature of China’s strategy, the late opening of financial markets gave positive results for the country’s economic growth and the stability of the financial system. At the moment, China is actively opening its economy to foreign investors and capital without “shocks” and sets itself the goal of becoming a player that forms the rules in the world market.

Sign in / Sign up

Export Citation Format

Share Document