International Finance TY BMS Gold Standard Systems Prof. Dipak Abhyankar 9820321404
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- International Finance TY BMS Gold Standard Systems Prof. Dipak
Abhyankar 9820321404
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- Note Be sure that the speakers are on!
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- Exchange Rate Regimes Dipak Abhyankar
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- Barter System Advantage No Government Intervention No Paper
Currency No managed inflation
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- Limitations Divisibility Barter System
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- Limitations Divisibility Barter System Stocking Value for
long
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- Limitations Divisibility Stocking value for long Fair price
discovery Barter System
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- Experiments Sea Shells Clay Tablets Precious Stones
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- Gold and Silver MonometalismBimetallism
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- Gold Standard Systems Gold Specie Standard Actual Use of Gold
Coins
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- Gold Specie Standard Actual Use of Gold Coins Advantages People
are using real value No certification required Exchange Rate is
simple and stable =
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- Gold Specie Standard Actual Use of Gold Coins Limitations
Larger Space requirement for stocking Inconvenient to Carry Risk of
Theft
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- Gold Specie Standard
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- Gold Bullion Standard
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- Currency is pegged with Gold with a specified quantity
Pegged
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- Gold Bullion Standard Unconditional Promise to convert Fiat
Currency to Gold Pegged
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- Gold Bullion Standard Advantages Controlled Money Supply Anti
Inflationary Exchange Rate is simple and stable Carries advantages
of Divisibility, Stocking of credits and easier pricing Pegged
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- Gold Bullion Standard Disadvantages Inflationary measures are
not possible, and hence full employment and growth objectives are
not achieved Difficult to honor unconditional promise in war and
crisis Pegged
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- Gold Exchange Standard Currency in Gold Exchange Standard is
pegged with another currency with specified equation [Currency B]
That another Currency is pegged with gold [Currency A] Currency B
is in Gold exchange standard Currency A is in Gold Bullion Standard
Currency B Pegged Currency A
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- Gold Standard Systems Gold Bullion Standard Paper (Fiat)
Currency Pegged with Gold Gold Exchange Standard Paper (Fiat)
Currency pegged with another currency which in turn is pegged with
Gold Gold Specie Standard `Actual Use of Gold Coins
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- Money is a headache and Money is the cure