BY
S. BAYO ADETIFA (BSC, FCIB, FCA, AMNIM, ACTI, ACS, MBA MSC)
CHAPTER 5 OF INTERNATIONAL demarcation FINANCE IN NIGERIA BY THE SAME AUTHOR
5.01INTRODUCTION
The centre-piece of international fiscal systems and markets is Europe and the North America with emphasis on the linked States which has played a very prominent role in the programmes and policies of the multilateral financial institutions such as the International property box for Reconstruction and Development (IBRD) and the Bretton Wood Systems
5.02EVOLUTION OF THE INTERNATIONAL MONETARY SYSTEMS
At the beginning of the International monetary systems, itemly amidst the early nineteenth and twentieth centuries amber was the touchstone of measuring rod of many international currencies. lucky has the features of the modern day bills because of its desirable properties such as portability, acceptability, durability and recognisability.
The Intrinsic appraise of Gold as a standard of measurement is approximately invariably equal to the extrinsic value, hence its production equal is very high with serious limitation of availability. One particular ingredient of the concept of money not applicable to Gold as commodity money is divisibility.
Gold is not advantageously divisible and where divisible not easily measurable. Besides, it is very rattling(a) to produce and limited in supply, hence countries using the Gold standard found substitutes in Government issued paper money (Bank notes and deposits). However, such issues not backed by Gold concur is called Fiduciary issue which usually leads to inflation.
5.03THE BRETTON WOODS SYSTEM
The Gold standard gain prominence in the measurement of the United States horse (US$) and Pounds Sterling (£). For example the exchange rate of the United States sawhorse was fixed at US$20.67 per ounce of gold in the midst of 1834 and 1933 while that of pound sterling was fixed at £3.17s . 10/12p between 1821 to 1914, thus, any country using the...If you want to determine a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment