Friday, August 10, 2012

International monetary system is absolute in the world today does not exist. Each state has its own system. Most people do not understand how unusual (unusual) system. For thousands of years these countries have pegged their currencies to one of the precious metals (gold or silver) or against other currencies. But in the last quarter-century since the international monetary system (Bretton Woods) is destroyed, the countries adopted the monetary system itself, fen Omena which have no historical example of the cooperation between countries, known as the international monetary system. Economists know that the dependence between the international monetary system is supported by the fact that the balance of payments equilibrium (a state) are interconnected to each other. If one country has a surplus trade balance of the other countries have a trade balance deficit. So a country moving towards surplus or deficit that automatically affect the other country. It has an influence on the exchange rate system. In a world of n states with n currencies, there are n-1 independent exchange rates. Each state can not set the exchange rate. There will be a lot of fixed exchange rates between countries. There is one degree free (degree of freedom), which allowed an increase in what economists call a (redundancy problem) the problem of excess. Rule where the additional degree of freedom to maintain price stability, or in the case of the gold standard (gold standard) is to maintain or stabilize the price of gold. On paper, the collection of data on nearly 200 countries with a single currency and a floating exchange rate will show the result of tremendous confusion. In practice, however, this system is not so bad. There are important links in the world financial structure with respect to the configuration of power in the world economy and the specific rules that are run by the U.S. currency. When a country has supereconomy, its currency is often fulfill many functions of an international currency

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