Chapter 2 The International Monetary System FINA470 Concordia University Summer 2015 History of the International Monetary System Exhibit 2.1 summarizes exchange rate regimes since 1860 The Gold Standard, 1876-1913 Countries set par value for their currency in terms of gold Exchange rates were in effect “fixed” Gold reserves were needed to back a currency’s value The gold standard worked until the outbreak of WWI, which interrupted trade flows and free movement of gold FINA470 Concordia…
Words 1577 - Pages 7