Abstract The surge in globalization for the past two decades has exacerbated the gaps between rich and poor. It has also pointed out imbalances in rule-making, with those that favor market expansion becoming more robust and enforceable; among these are rules concerning intellectual property rights and trade dispute resolution. This paper explains that it is arguable that the Bretton Woods agreement was successful. It could easily be argued that it served to minimize the disparity, not enhance it, by virtue of the loan provisions. It could be argued that while the poor are always with us, so are the rich. The paper argues that the Bretton Woods agreements, in themselves, might be regarded as an unqualified success in the history of world economics; what has failed, however, is the construction of a world philosophy that would allow nations to enter into such agreements in the true sense of global prosperity Bretton Woods-in the waning days of the world's worst war following the world's worse economic era-sought to foster.
From the Paper "The International Monetary Fund (IMF), the most essential outgrowth of the Bretton Woods conference in July, 1944, has drawn not only critics, but also protestors. In September, 2002, about 2,000 protestors were kept in line by police officers in Washington, D.C. Police took "649 people into custody while avoiding the mass violence that has marred other such demonstrations in recent years" (Franken et al 2002). At the time, finance minister of the Group of 24, also known as G-24, were meeting. Their task is to "coordinate the positions of developing nations on monetary and finance issues and to ensure that those positions are adequately represented to the IMF and World Bank." G-24 has eight member states in Africa, Asia, Latin America and the Caribbean. Also meeting were the finance minister of the Group of 7, or G-7, to discuss economic and financial issues of the major industrial nations-- Canada, Japan, France, the United Kingdom, Germany, the United States and Italy. The headquarters of the IMF is in Washington, D.C."
Abstract The Bretton Woods system of international monetary management was set up after World War II and established the rules for commercial and financial relations among the world's major industrial states. This paper attempts to analyse to which political considerations precipitated the inception and then the eventual collapse of the Bretton Woods system.
From the Paper "Through loans and the Marshall Plan, money flowed into Europe; tariffs on American imports were put in place as a temporary measure to help in reconstruction. As a result, Europe was able to increase productivity and create a regional bloc that discriminated in favour of each other and against the United States. The extension of credit through loans and aid resulted in a deficit in the balance of payments in the United States, which was seen as necessary at the time 'if other countries, and especially those of Europe, were to build their reserves at the rate they did. The United States and the whole free world economy benefited by this' (Diebold, 1960:6). The end of the 1950s saw the end of exchange controls in Europe. "
Tags: bank, consensus, economy, exchange, imf, post, rate, stability, war, world
Abstract This paper examines the post-war international monetary system, which was introduced to deal with the shortcomings of a freely fluctuating exchange rates regime. It starts by presenting the history of the Bretton Woods System (BWS) and its features. The paper then outlines the pre-requisites for the BWS to operate. A series of events that led to the collapse of the BWS are also studied alongside its inherent defect (the 'n'th country problem).
From the Paper "As early as 1942, the Americans and British shared common ground on international monetary matters. They were opposed to a system of freely fluctuating exchange rates, which they judged to have had adverse effects on the world economies on two counts, in the years immediately after World War I and in the 1930s when the Great Depression set in. They were also opposed to a system of absolutely fixed exchange rates. In addition, there was also a common view that unregulated and competitive trade restrictions were not beneficial to the international community. By contrast, both countries agreed that countries should be free to control certain capital transfers especially those of a short-term nature."
Abstract This essay will argue the reality of exchange rates in the modern world is much more complex than popular wisdom would suggest. Through a discussion of the history of exchange rates in the postwar era - from the fixed rates established at Bretton Woods to the flexible rates of today - it will be seen that exchange rates are one of the most complex features of modern economics. As the Canadian experience demonstrates, control of the exchange rates is beyond the power of governments to significantly influence in the long term. Indeed, given the complexities of the relationship between exchange rates and market forces, exchange rates are a feature of modern economics that defy easy analysis and prediction.
Abstract This paper examines how there was here was a slowdown in productivity in the Organisation for Economic Co-operation and Development (OECD) caused by numerous developments during the late sixties and early seventies, most notably the collapse of Bretton Woods, the exhaustion of catch-up gains and labour issues. On a more wider comparison to the decade before, it looks at how the 1970s seemed to be a time that lacked the stability and drive of the 1960s, both of which were exacerbated by the First Oil Shock. It attempts to show how it was also the ineffective responses by government to these developments that caused greater instability.
From the Paper "In America the story of the productivity slowdown is perhaps slightly different to that of Europe. It represents the fall of the lead America had in technological leadership. In the article by Wright and Nelson they distinguish that there was a clear weakening in the advantages that American firms used to have in mass production. The initial reasons for the US technological lead were its long standing strength in mass production that was allowed to develop because of resource abundance and a large domestic market as well as a lead in 'high technology' industries that came about due to investment in higher education and R&D at a level that was much higher than any other country at the time."
This paper explains that many factors, such as history, politics, differential currency types, ease of conversion and regulations of various international banking institutions, prevent full harmonization of international financial reporting.
Abstract This paper explains the history of the inter-relationship of political and economic changes that effect today's problem of harmonization of currency and reporting such as (1) competing economic policy objectives similar to today's problems with oil, (2) the Janus-faced nature of international capital flows and (3) the changing center of influence of the international system from the United Kingdom and toward the United States. The author points out that the new ISO engineering standards represent a model for standardizing accounting and reporting processes not only by solving the problems of harmonizing the accounting and reporting process but also by offering an open-ended approach, easily adaptable to even the smallest of enterprises. The paper stresses that this need for global standardization means that the mundane "bean-counters" of the past must be replace by today's global accountants trained in several disciplines.
Table of Contents
Thesis Statement
The Powerful Influence of History
The Gold Standard
The Rise and Dilemmas of Bimetallism
The Development of the International Monetary Systems between WWI and WW II
The Bretton Woods System and its Problems
The Harmonization of the British Pound, U.S. Dollar and the European Common Currency
The Future Outlook from an ISO Point of View
From the Paper "Between the wars, the United States overtook Britain as the leading player in the commercial and the financial domains. However, America's foreign financial and commercial relations did not yet fit together in a way that produced a harmoniously working international system. Moreover, with even today's technological edge America is finding the attainment of harmonization a difficult task at best. Great Britain likewise struggles with several issues in this area. Hence, when postwar planners again contemplated the reconstruction of the international system, they sought a framework capable of accommodating these changed conditions. The solutions to the problems are not at all straightforward and thus the pronounced lack of harmonization of accounting and reporting."
Abstract This paper traces the root of the obstacles blocking economic development of many underdeveloped countries back to the Bretton Woods agreement. The paper argues that as a result of this agreement, many of the war-torn countries that needed to rebuild themselves after World War II were, compared to the industrialized nations, at an automatic disadvantage because of their relatively lower productivity and sometimes non-existent infrastructures. The paper also suggests that this automatic disadvantage has had a lasting legacy and that the U.N. and the international bodies that came out of the Bretton Woods agreement still create obstacles to economic development for less developed nations. The paper also takes a look at the consequences of an imbalance in opportunities for economic development and concludes that in order to close the gap between wealthy and poor nations, a more sociologically and ethically based approach to global governance is required.
Introduction
The Bretton Woods Legacy
All Pigs are Not Equal
Current Contributions to the Rich-Poor Gap of Nations
Consequences of Inequality of Wealth for the "Right to Development"
Conclusion
From the Paper "Had it not been for the Great Depression (beginning in 1929) and World War II (1939-1945), there might have been no Bretton Woods Conference, no International Bank for Reconstruction and Development (the World Bank) no International Monetary Fund. Nor would there have been, arguably, the current divergence between rich nations and poor, or at least, the gulf might not have been so deep and so well-defined. The "destruction caused by war and the money nations spent fighting it" harmed most of the European and Asian economies, leaving only the United States, among industrialized nations, not in need of rebuilding its infrastructure or its economy (Earth Explorer, 1995). Now, however, it seems there is economic destruction of another kind, founded in an imbalance of payments and opportunity that has resulted in virtual negation of the Right to Development that would appear to be a legitimate claim of any nation."
Examines impact of Bretton Woods Conference, flexible & floating (free & managed) exchange rates, volatility and the impact on developed & emerging economies.
1,575 words (approx. 6.3 pages), 8 sources, 1996, $ 55.95
From the Paper "Introduction
Technology has brought about changes in the global environment, including changes in the currency markets. Where currencies were once fixed to the price of gold, and the dollar was the measure of the world's currencies (since the Bretton Woods Conference), most currencies now "float," meaning that they are able to vary in their relationships with other currencies. This has led to speculation not only by private investors, but also to manipulation by governments seeking to maximize the performance of their currencies on the world market. In a global marketplace, this can have serious consequences. The Japanese discovered during the early 1990s that a strong currency makes their exports more expensive relative to other products, with the result that there can be a downturn in the quantity of goods demanded. This research .."
From the Paper "FIXED AND FLOATING EXCHANGE RATES
Introduction
This research examines the concepts of fixed and floating exchange rates. Prior to discussing these concepts, the gold standard and the Bretton Woods Agreement are reviewed.
The Gold Standard
An economy is said to be on the gold standard, when its central bank is required to provide gold in exchange for the country's currency presented to the central bank (Baxter, 1986, p. 203). In the United States, the Federal Reserve System acts as the country's central bank. In practice, if the United States economy were on the gold standard, without any restrictions, United States currency could be redeemed for gold at any commercial bank which was a member of the Federal Reserve System."
History & evolution of Bretton Woods fixed-rate & floating exchange rate systems since 1944. Looing at its purposes, effectiveness, impact on currencies & trade and inflation.
1,575 words (approx. 6.3 pages), 11 sources, 1999, $ 55.95
From the Paper "EVOLUTION OF THE BRETTON WOODS EXCHANGE RATE SYSTEM & THE FLOATING EXCHANGE RATE SYSTEM
This research examines the evolution of the Bretton Woods exchange rate system (a fixed-rate system) and the floating exchange rate system. Advantages and disadvantages of each system type are discussed, along with a brief review of approaches to exchange risk hedging under the floating rate system, and an assessment of the possibility of returning to a fixed-rate system.
The onset of the economic depression in 1930 caused most major countries to abandon the gold standard by 1933. In 1934, however, the United States adopted the gold exchange standard, and set the gold/dollar exchange rate at one ounce/$35.
Under the gold standard prevailing prior to the beginning of.."
Origins in 1944 with Bretton Woods Conference and the end of gold standard for U.S. Examines free & managed currencies, speculators, derivatives, risks and hedging.
2,475 words (approx. 9.9 pages), 10 sources, 1999, $ 87.95
From the Paper "Introduction
Because each nation issues its own currency, each currency is worth something different in relation to every other currency in the world. Nations which have strong economies generally have strong currencies, which is why today's currency markets are dominated by the yen, the American dollar and the mark. At some point in history, enterprising traders devised ways to trade not in goods or services from one country to another, but in the currency of various countries. Derided as gamblers by some analysts and considered reckless interlopers by others, these speculators estimate whether one currency will rise or fall in relation to another, and buy, or sell, accordingly. With the advances in technology that have occurred in the last half of this century, it is no longer necessary that traders wait for markets to open in difference.."
Examines the foreign exchange market, Bretton Woods Conference, U.S. and gold standard, types of currencies and speculators, derivatives, rate changesand risks.
3,375 words (approx. 13.5 pages), 10 sources, 1995, $ 119.95
From the Paper "Introduction
Nations have been minting their own currencies for thousands of years, and individuals in most countries are used to using currency as a medium of exchange. In most countries, pieces of paper are readily exchanged for goods and services. When checks or bank drafts are used, the symbolic use of currency is taken one step further: the checks represent the currency which represents the value of the thing in question. So long as governments are secure and able to back their currencies, this system works well. When governments fall, the currency becomes as "worthless as the paper it is printed on."
Because each nation issues its own currency, each currency is worth something different in relation to every other currency in the world. Nations which have strong economies generally have strong currencies, which ..."
Abstract This paper discusses the exchange rate movement of the Japanese Yen to the American dollar using three popular exchange rate models: the Purchasing Power Parity (PPP); the Current Account Model (CAM) and the Portfolio Balance Model (PBM). These three models are discussed after a brief introduction that establishes the groundwork for the investigation. The paper includes tables.
From the Paper "Hedging and arbitrage to achieve exchange rate maximization are primarily functions of capitalistic economies. Since both the United States and Japan are "capitalist" countries (although each adheres to a different philosophy of capitalism) a study of the relationship between the Japanese Yen and the American Dollar can be an instructive guide to the disparate nature of capitalism. The American government still adheres to the myth of free market fluctuations and flexibility as the basis of capitalism, while the Japanese believe that business and government must become allies to engender growth of Japanese companies."
An overview of American economy over the last fifty years, showing that from despite setbacks, the country's purchasing power has increased dramatically.
Abstract If seen from the standpoint of GDP per capita growth, the United States has done well over the course of the last 50 years. Even in constant dollars, the United States has more than doubled its per capita GDP in this time period. This paper shows that these facts should not be surprising to anyone. Only moderate recessions have hindered growth throughout this period, with the most notable ones being in the early 70's as the Bretton Woods system fell apart, the late 80's following the ?87 crash, and the recent recession that followed the collapse of the dot com industry, the telecommunications industry, and the World Trade Center. The paper shows that despite these setbacks, we have seen an almost exponential rise in the purchasing power of the United States; which has surpassed both the growth rate of the population and the rate of inflation. This paper uses graphs and tables to illustrate major points.
From the Paper "When reality set in and these issues started to fall, investors were quick to hunt for opportunities to invest as an alternative to traditional stock evaluations, much like what is happening now. Investment gurus known as "market timers" also developed exotic methodologies by which to invest, entering or leaving the market in response to perceived signals. For instance, a popular investment methodology was to chart when the price of a stock crossed its ninety-day average. An investor would buy at this point, selling again when the stock fell below its thirty-day average. This seemed to be an attractive method of investing when holding a stock long-term was bound to be an unprofitable prospect. Investors that use such methodologies are known as "market technicians" or ?technical analysts,? whereas the majority of investors are known as "fundamental analysts" and appraise the value of a stock based on projected future earnings. Edson Gould, Joe Granville, Bob Pretcher and Don Hahn were market timers who achieved guru status during the 70's because of the luck they achieved at timing markets."
Tags: inflation, stock, valuation, Dow, Jones, Industrial, Average
Abstract Examines the nature of the Bank of England, England's monetary policy and the recent history of the pound. Included in this study is a look at how the value of the Pound is determined and England's position on European Monetary Union.
From the Paper "Many feel that much of Britain's autonomy centers on Sterling and the Bank of England. The United Kingdom was the most prominent country to have abstained from Europe's effort to create a common currency, which caused such prominent and popular political figures as Lady Margaret Thatcher to be ousted. Once a mere cog in the economic hegemony of the United States following the Bretton Woods conference, England is a currency trading powerhouse, with nearly 700 billion pounds sterling trading hands every day in London's interbank market. In that many believe or once believed the currency issue to have the ability to economically castrate Britain, the nature of the Bank of England, monetary policy, and the recent history of the Pound deserve our redress."
