Monetary 2.edited 1

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International Monetary System
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The Current International Monetary System
The international monetary system is a set of agreed-upon rules that support investment
between different countries as well as the reallocation of capital and trade. These rules determine
how macroeconomic management and exchange rates are addressed between nations.
The current international monetary system comprises of agreement of the fund articles
(Murau & van’t Klooster, 2022), designed to support the currency interconvertibility. It includes
a par value system in which each country has to maintain a fixed value of its currency relative to
other currencies. Second, the system covers the arrangements under which the national reserves
are held, where in this case the international reserves include currencies such as the French franc,
dollar, and sterling (Murau & van’t Klooster, 2022). In short, the main purpose of this system is
to facilitate the exchange of capital and exchange of goods and services among countries. This
will in return lead to high global growth and financial stability.
Next, we look at how the current system works or the functions. To be …
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