Essays on Monetary System

Introduction

Casino Capitalism is a vivid description of the international financial markets, their behavior, and the economic strength they yield to various entities. The book goes on to describe the advantages of international financial markets and some of the evils associated with the same. The author, Susan Strange was a former student of the British international relations studies; she is mostly renowned for her contributions to the creation of the international political economy. Apart from her major publication of the Casino Capitalism in 1986, she also published other books, namely: States and Markets (1988), The Retreat of the State (1996) ...

Healthcare fraud in the US is more common than one would think. In fact, the US government loses billions of dollars each year due to fraudulent billing, kickbacks, and other illegal activities by physicians, hospitals, pharmaceutical companies, and many other stakeholders. In my opinion, the fines for healthcare fraud should be stiff, especially in cases that result in unnecessary injuries or deaths. In my estimation, one of the best things that can be done to improve healthcare, and minimize incidents of fraud is to eliminate the profit motive from the healthcare system. In a video about Health Management Associates ( ...

The killing of President John F. Kennedy was a blatant murder, not a random assassination executed by a man by the name of Lee Harvey Oswald. His death was carefully planned out, and was a result of the Presidents attitude towards issues surrounding the Federal Reserve, or otherwise known as the FDIC. Also, the Warren Commission, unofficially claims that Lee Harvey Oswald was an ex-military man, with a history of depression and suicide attempts. This of course is the US Governments official response to what happened that day. The Warren Commission claims that he single-handily planned and executed an assassination attempt on President John ...

Since the time of the early civilizations, money became an integral part of society as people use it to attain basic needs and specialized services, including luxury. As the years progressed, the image of money had changed from circular stones to paper money and metal coins and its value varies from its country of origin (currencies) and the resource or service required. In recent years, money has taken another makeover as payable services and goods are now available online for people on the go, creating “electronic money”. With the introduction of electronic money, there are a few sectors now ...

The Maastricht Treaty launched the European Monetary Union in the year 1992. The union comprised of two parts, which included the creation of euro the common currency and creation of the European Central Bank, which coordinates all monetary policies in the Eurozone. The treaty also created the rules for countries willing to join the union. The other element of the treaty was the national central banks of the 16 member countries. European Monetary Union creation has led to price stability and proper management of public finances (McKay Volz & Wolfinger 2011).The final phase of the single currency introduction ...

1. How is international financial management different from domestic financial management?

International financial management is similar in many ways to domestic financial management. However, there are several key differences. In domestic finance, the issue of exchange rates is not common. However, international financial management involves use of exchange rates considering the fact that different currencies are used in this market. Managers should be aware of implications of exchange rates in their managerial activities. International financial management involves being aware of the risks associated with exchange rates. This is not the case in domestic financial management where there are no exchange rate risks (Brigham, 2011).

International financial management involves acquiring capital ...

The most important economic policy today is one that will spur economic growth. The economy has to emerge from the serious problems it is currently engulfed in which include: high unemployment, reduced consumer demand, a shrinking middle class, a large national deficit and the mishaps of the housing estate. Unemployment is a major issue of concern to date. It is critical that a policy that will spur economic growth be implemented because the other variables are largely dependent on the level of economic growth (Von Mises, 2006). A fiscal policy that will increase incomes of household will raise aggregate demand, and then firms ...

ITERNATIONAL MONETARY SYSTEMS

Abstract The purpose of this paper was to study three main monetary systems: the Gold Standard, the Bretton Woods, and post-Bretton Woods. International monetary system is a set of methods, tools and intergovernmental bodies, with the help of which the mutual payment and settlement turnover function within the global economy. There existed and succeeded each other three international monetary system. The first one, the Gold standard, was based on gold which was the main form of money. National currencies were pegged to gold, and the gold content of the currencies was correlated with each other at a fixed exchange ...

In 1820s the Ottoman Empire experienced significant financial difficulties, which resulted into a considerable increase in the interest rates. Therefore, the state took various strategies to deal with the problem, including through tax-farmers in tax collection. It is during this time that the Galata bankers rose to prominence (Pamuk, 226). Galata bankers were the moneyexchangers (sarrafs), who gained popularity during the 18th century, and grew to large financials. They took advantage of the financial difficulties of the state, especially in addressing the short-term and long-term financial needs. The Galata bankers are known to be providing financial help to the state ...

"All the perplexities, confusions, and distresses in America arise, not from defects in their constitution or confederation, not from a want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation." John Adams, Letter to Thomas Jefferson (August 23, 1787) A major reason why the American public and its politicians have not been able to free the US monetary system from the hands of private bankers is simply because they do not understand the intricacies of the Banking system. The Founding Fathers only authorize limited banking charters and otherwise money was ...

Monetary system in India

Abstract Banks and central banks have a great role to play in the development of a country’s economy. In essence, banks provide and create money through credit, a scenario that provide a country with the much needed where withal to implement major policies. Banks have emerged as the new fore front of development across the world with institutions and government agencies turning to banks for support and growth. Yet, the banking sector remains prone to external shocks such as business cycles and political turmoil. Furthermore, banks require a secure and flexible legal structure to offer services to people. The control of Central ...

Abstract

The research paper deals with the Great Depression and its effects on European economies as well as the ways it was handled by the respective countries. The project is based on the opinions of world’s finest economic experts, historians and scientists. The problem raised is supported by statistical proofs retrieved from researches conducted by the abovementioned subject-field scientists. Key words: the Great Depression, economic, Europe, crisis, war. The Great Depression is a harsh world economic crisis that spanned over the timeframe of 15 years wedged between two world wars. 1930s are considered the starting point of the ...

Economies across the world need solutions to upcoming challenges. These solutions, however, should not be brought about by the adoption of a global monetary system that is run by NGOs, businessmen or bankers. Connoly (2011) presents reasons why an agreement equitable to the Bretton Woods Conference would not be feasible today. First the system has been tried before with mixed results. There was a decline in productivity due to government regulations, capital controls, high taxes, and a rigid financial and industrial structure (Boughton, et al, 1995). There were also increases in commodity prices which increased downward pressure especially in the US. ...

The Bretton Woods system is an international monetary policy that was adopted by various countries across the word. This system required countries to maintain their exchange rate within a given value by comparison with gold. The system was set up in 1944 by delegates from some 44 nations in Bretton Woods, New Hampshire. Upon establishment of the Bretton Woods System some international organizations were also set up: the International Monetary Fund (IMF), the General Agreement on Tariffs and Trade (GATT) and the International Bank for Reconstruction and Development (IBRD). The agreement sought to act in favor of the public good ...

Modern Money Theory or MMT is macroeconomic theory which forms the basis for analyzing an economy as it in reality exists. The theory is regarded as a group or set ideas, concepts or notions which define how monetary and fiscal policies should be carried out within an economy, and how effectively the policies can benefit a nation based on its unique set of resources and monetary limitations (Wray 9). It’s established as a way of doing economics, based on the incorporation of an autonomous modern day to day monetary system and the dynamics of operating a “fiat currency” economy. This means that ...

The Bretton Woods conference held in 1944 in New Hampshire in the United States of America at the Mount Washington Hotel, situated in Bretton Woods. The conference also known as the United Nations Monetary and Financial Conference had 730 delegates each representing the allied nation. It aim was to put in regulatory measures to control the international monetary system. The conference aimed at putting the world currencies and monetary systems to order after the World War II. Many policies were passed at the conference, but they became effective in 1958 because the European currencies were not convertible at the ...

Federal Reserve Paper

Introduction Throughout the 19th century and the start of the 20th century, monetary alarms overwhelmed the nation, dominant to bank deficiency and company downfall that rigorously agitated the economy. The downfall of the nation’s banking structure to adequately supply funding to anxious depository organizations provided considerably to the economy’s susceptibility to monetary alarms. Short range credit is a significant basis of liquidity when a bank senses unanticipated and extensive withdrawals throughout a monetary alarm. A chiefly severe crisis in 1907 provoked Congress to set up the National Monetary Commission, which put onward recommendation to generate a foundation that would help ...

John Locke’s Second Treatise of Government

Disproportionate and Unequal Possession of the Earth: John Locke’s Second Treatise of Government

In John Locke’s Second Treatise of Government, Section 50 says that “by a tacit and voluntary consent,” men “have agreed to a disproportionate and unequal possession of the earth” (Locke, 1690, p. 19). Whether or not gold or money is a good representative of real wealth in goods or services and that man has made this tacit and consensual agreement for “disproportionate and unequal possession of the earth” is a debate that scholars continue to debate. Locke’s writing invites inquiry; his ideas concerning possession, consent, wealth, ...

Introduction

The gold standard is a monetary system where the typical financial unit of account is/was a set mass of gold. At the time they were in use, there were distinct standards. For instance, the first standard was the gold specie standard, followed by the gold exchange standard, after which came the gold bullion standard.

Reason for collapse

The collapse of the gold standard was majorly because of its failure to support international expansion. It came under international pressure in the 1930s when there were international engagements in competitive devaluations. The commencing of the First World War marked the collapse of the gold standard. There ...

Monetary system refers to instrument adopted by a country or an economic block for facilitating exchange. The monetary system is the means of generating and measuring debt and wealth in financial markets. Currency is the main tool used in monetary system, for measuring economic value. Other means of payments include checks, credit cards and debit cards. The momentary system also describes the economic approach adopted by government with respect to currency exchange market. There are two approaches to currency exchange market operations; fixed rate and floating rate. The Brazilian currency is called the Real (BRL/ R$) and has adopted floating ...

Question 1

Most developing countries have large balance of payment deficit that have accumulated over the years. This has been caused by the high level of dependence by developing countries on the outside world which is evidenced by the large proportion of imports relative to exports. There various measures can be used by developing countries to correct balance of payment deficits.

First, a country can devalue its currency. Devaluation of a nation’s currency will result in downward shift in the value of the domestic currency relative to foreign currencies. Devaluation of the domestic currency will reduce the prices of exports while increasing ...

The gold standard is a monetary system which suggests pegging of economic unit of account with fixed mass of gold. For understanding the meaning of the gold standard a little digression in history is needed.

The United States switched to the gold standard in 1834 because of silver currency and bank notes crisis. The price for gold in the United States was set at $20.67 per ounce that year. The majority of the countries adhered to gold in the period called Classical Gold Standard from 1880 to 1914. This was the period of unprecedented economic growth and free trade in the ...