The specific content of the international monetary system:

The goal and function of the international monetary system

The Historical Evolution of the International Monetary System

(A) the gold standard system

(2) Virtual gold standard (also called gold exchange standard)

(3) the chaotic stage

(D) Bretton Woods system, the international monetary system

(5) Jamaica system

The concept of international monetary system The international monetary system is the general name of the principles, measures and organizational forms established by governments in order to meet the needs of international trade and international payment.

[Edit this paragraph] Specific contents of the international monetary system:

1, which determines the exchange rate system of the world and national currencies. 2. Determine the coordination mechanism of international monetary and financial affairs or establish relevant coordination and supervision institutions. 3. Determine the financing mechanism. 4. Determine the dominant currency or international reserve currency. 5. Determine the balance of payments and performance constraint mechanism of the international currency issuing countries.

[Edit this paragraph] Objectives and functions of the international monetary system

The goal and function of the international monetary system: to ensure the stable and orderly development of international trade and the world economy, and to effectively develop and utilize the resources of various countries. Function: establish exchange rate mechanism to prevent vicious devaluation of circulation; Provide favorable means and solutions for adjusting the imbalance of international payments; Promote economic policy coordination among countries.

[Edit this paragraph] The historical evolution of the international monetary system

[Edit this paragraph] (1) gold standard

The first international monetary system in history was implemented from19th century to the First World War. Main contents: (1) Gold is the foundation of the international monetary system, which can be freely imported and exported to China, and is an international reserve asset and settlement currency; (2) Gold coins can be freely circulated and stored, and can also be freely cast according to the legal gold content. All kinds of gold coins or paper money can be freely converted into gold. Advantages: It is a relatively stable monetary system, which is manifested in the relatively stable exchange rates among currency, gold and other coins representing the circulation of gold and bank notes, and the relatively stable price levels in various countries. Therefore, it has played a positive role in exchange rate stability, international trade, international capital flow and economic development. Disadvantages and disintegration of the system: the monetary system is too dependent on gold, and the growth of gold production in reality is far from meeting the demand for gold in the world economic and trade growth. In short, gold is not enough. Coupled with the huge gap in economic strength among countries, the distribution of gold reserves is extremely uneven. Therefore, the issuance of bank notes is increasing, and the exchange of gold is becoming more and more difficult. When World War I broke out, countries stopped exporting gold, stopped the free exchange of bank notes and gold, and the international gold standard disintegrated.

[Edit this paragraph] (2) Virtual gold standard (also known as gold exchange standard)

It prevailed from the end of World War I to the beginning of the Great Depression in 1930s. It was determined at the international monetary and financial conference held in Genoa, Italy on 1922. Basic content: (1) Gold is still the foundation of the international monetary system, and paper money in various countries still has a gold content, replacing gold to perform the functions of circulation, clearing and payment means. (2) The domestic currency is directly linked to gold or indirectly linked to gold through another currency linked to gold, and the fixed price is directly or indirectly maintained with gold. (3) Under the condition of indirect linkage, functions of money can exchange foreign exchange for gold, but it cannot directly exchange gold. (4) Gold can only be used as a means of payment at the last minute to maintain exchange rate stability. Advantages and disadvantages: save the use of gold and make up for the shortage of gold in the gold standard system. However, in the development of world trade, the gap between the demand for gold and the output of gold still exists, especially in the case of frequent exchange rate fluctuations. It is not enough to only intervene in the foreign exchange market with gold to maintain a fixed price. Disintegration: 1929- 1933 World economic crisis, the international virtual gold standard collapsed.

[Edit this paragraph] (3) Chaos stage

From the 1930s to the pre-World War II, the international trade system entered a chaotic period of more than ten years, during which three major monetary groups (GBP Group, USD Group and Franc Group) centered on Britain, America and France were formed. The three major groups took the currencies of their respective countries as the main sources of reserve currency and international liquidity, and at the same time launched a worldwide competition for the dominance of international monetary finance, which lasted until the end of World War II.

[Edit this paragraph] (4) Bretton Woods system, international monetary system

(1) Content The Agreement of the International Monetary Fund has established an international gold exchange standard centered on the US dollar. The US dollar is linked to gold, and the currencies of various countries are linked to the US dollar to establish a fixed price relationship. The specific content of "double hook" is: 1. The international reserve currency-the US dollar is determined, and the US dollar is linked to gold: ① Official price: US$ 35 = 1 ounce of gold; (2) The United States allows governments or central banks to exchange gold with the United States at official prices at any time; The currencies of other countries cannot be exchanged for gold. Other currencies are linked to the US dollar: ① The currencies of all countries maintain a fixed exchange rate with the US dollar, which is determined by the gold parity; (2) The fluctuation range of national currency exchange rate should not exceed 1% of gold parity, otherwise governments must intervene. 2. Establish a permanent international monetary and financial institution-the International Monetary Fund. 3. Provisions on the issuance and exchange of US dollars. 4. Determine the fixed exchange rate system. 5. Propose a financing plan. (2) Advantages: 1, solving the problem of international reserve shortage (gold shortage). The fixed exchange rate has stabilized the world financial market. 3. International Monetary Fund and financing plan have promoted international financial cooperation. () (3) Reasons for the collapse of the Bretton Woods system 1. The United States has achieved its own world financial hegemony. 2. "Triffin's Dilemma" reveals that there are some unsolvable problems in this system: the US dollar-centered international monetary system was established when the US economy was strong, the balance of payments maintained a large surplus, the foreign exchange reserves of gold were relatively sufficient, and there was a "dollar shortage" in other countries. The operation of the Bretton Woods system must meet three basic conditions: 1, the balance of payments of the United States must be surplus, and the external value of the US dollar can be stable; 2. The United States has sufficient gold reserves; Gold must be maintained at the official price level. In fact, these three conditions cannot be met at the same time. This shows that there is an inevitable internal contradiction in the Bretton Woods system-"Triffin Dilemma" (American economist triffin pointed out in his book "gold and the dollar Crisis"): If the US balance of payments keeps a surplus, the international reserve assets will not meet the needs of international trade development, resulting in a "dollar shortage"; Dollar shortage: After World War II, European countries were short of funds and materials. The United States made a fortune in the war and greatly improved its productivity. Countries urgently need to import goods from the United States. However, the purchase of American goods must be paid in dollars or gold, and the amount of gold in various countries is limited, so it is impossible to export it to the United States for dollars. This has caused a large surplus in the balance of payments of the United States, and other countries have a large demand for dollars, which has caused the exchange rate of dollars to rise in the international market, and the supply of dollars is in short supply. By 1949, the US gold reserve was as high as $24.5 billion, while other countries in the world experienced a dollar shortage. If there is a deficit in the balance of payments in the United States, it will easily lead to the depreciation of the dollar, a dollar crisis, and a "dollar disaster." Dollar disaster: refers to the phenomenon of selling dollars and snapping up gold and hard currency. From 65438 to the early 1960s, the balance of payments in the United States deteriorated gradually. The main reasons are as follows: (1) 1948. The United States implemented the Marshall Plan and provided foreign economic assistance. A large number of dollars flowed into western European countries, which enabled the economies of western European countries to recover and develop, and their commodities flowed into the international market, gaining more gold and dollars. (2) Since 1950, the United States has pursued the policy of foreign expansion, which has led to a large increase in military expenditure, a large amount of dollars outflow and a deficit in international payments. (3) The low interest rate policy of the United States promotes the outflow of domestic funds, and the deficit of the United States continues to expand. In this way, the shortage of dollars in some countries after the 1960 s turned into a surplus of dollars, and the dollar continued to depreciate. In order to avoid exchange rate risk, other countries are reluctant to accept dollars in international payments. The dollar is extremely weak and often becomes the target of selling. 1960 the first dollar crisis broke out in June 5438+00. Since then, the international status of the US dollar has been weakening, which shows that financial markets around the world have sold the US dollar and snapped up gold and coins, and the exchange rate of the US dollar has fallen. 1March, 968, the United States experienced an unprecedented and serious second dollar crisis. In more than half a month, more than1400 million dollars flowed out of the US gold reserve. /kloc-in March of 0/4, the trading volume of London gold market reached a record 350-400 tons. 1971August 15, the us government announced that it would stop central banks from exchanging gold with the us at official prices. In February of the same year, it was announced that the dollar depreciated by 7.89%, and the official price of gold was raised from $35 to $38 per ounce. However, these measures failed to prevent the continued development of the US balance of payments crisis and the US dollar crisis. 1February, 973, due to the serious balance of payments deficit in the United States, the credit of the US dollar plummeted, and the international financial market once again set off a wave of selling dollars, snapping up the former German mark and Japanese yen, and then snapping up gold. On February 9 alone, the foreign exchange market in Frankfurt, Germany sold nearly 2 billion US dollars, and the international foreign exchange market had to be temporarily closed. In this situation, in February12,0973, the U.S. government again announced the depreciation of the U.S. dollar 10%, and the official price of gold increased to $42.22 per ounce. The devaluation of the dollar and Germany failed to prevent the dollar disaster. March 1973 Another wave of selling dollars, snapping up gold and the former German mark in Western Europe. The price of gold in the London gold market once rose to $96 an ounce. Eventually, it led to the collapse of the fixed exchange rate system centered on the US dollar after World War II. In fact, since 1960s+1950s, there has been a deficit in the balance of payments of the United States, and a large amount of dollar surplus has appeared in the international market. From 1960s to 1970s, there were many dollar crises.

[Edit this paragraph] (5) Jamaica system

Jamaica system has been in use since the collapse of Bretton Woods system in 1970s. After the collapse of the Bretton Woods system, the IMF adopted the Jamaica Agreement on 1976, which confirmed the legitimacy of the floating exchange rate after the collapse of the Bretton Woods system and continued to safeguard the principle of global multilateral free payment. Although the international standard and international reserve currency status of the US dollar have been weakened, its dominant position in the international monetary system and the international reserve function of the currency have been continued, and the original organization and functions of the IMF have also survived. However, the standards and norms under the Bretton Woods system determined by the five basic contents of the international monetary system are fragmented. Therefore, the existing international monetary system is nicknamed "non-systematic system", and the weakening of rules has led to many contradictions. Especially when the trend of financial market globalization triggered by economic globalization was further strengthened in the 1990s, the internal contradictions of the system became increasingly prominent. Specific content: (1) gold is not monetized: gold is completely decoupled from other countries' currencies and is no longer the basis of exchange rate. (2) Diversification of international reserves: USD, EUR, GBP, JPY, gold, SDR, etc. (3) Legalization of floating exchange rate system: single floating, joint floating, pegged floating and managed floating. (4) Diversification of monetary intermediary mechanism: exchange rate adjustment, interest rate adjustment, IMF intervention and loan adjustment. Advantages: (1) Diversification of international reserves: getting rid of dependence on a single currency, making the supply and use of money more convenient and flexible, and solving the Triffin dilemma. (2) The floating exchange rate system is a relative economic adjustment based on sensitively reflecting the economic dynamics of various countries. (3) Diversification of monetary intermediary mechanisms: various adjustment mechanisms complement each other, avoiding the embarrassment of adjustment failure under the Bretton Woods system. Disadvantages: (1) Diversification of international reserves: the international monetary pattern is unstable, and the management adjustment is complex and difficult. (2) The floating exchange rate system has aggravated the turmoil and chaos of the international financial market and system, and short-term speculative activities such as arbitrage and arbitrage have flooded in large numbers, causing many financial crises. The change of exchange rate is unpredictable, which is not conducive to international trade and investment. (3) Diversification of mediation mechanism cannot fundamentally change the contradiction of international balance of payments imbalance. The Asian financial crisis and the failure of several interventions by the International Monetary Fund are examples. Reflections on the reform of the international monetary system by the world dollar The outbreak and spread of Zhou Xiaochuan's financial crisis once again confronted us with an old and unresolved question, that is, what kind of international reserve currency can maintain global financial stability and promote the development of the world economy. The silver standard, gold standard, gold exchange standard and Bretton Woods system in history are all different institutional arrangements to solve this problem, which is also one of the purposes of the establishment of the International Monetary Fund (IMF). However, the financial crisis shows that this problem is far from being solved, but it is getting worse because of the inherent defects of the current international monetary system. Theoretically speaking, the value of international reserve currency should first have a stable benchmark and clear issuance rules to ensure orderly supply; Secondly, its total supply can be adjusted timely and flexibly according to the change of demand; Third, this adjustment must be divorced from the economic situation and interests of any country. At present, taking sovereign credit currency as the main international reserve currency is a rare special case in history. This crisis once again warns us that we must creatively reform and improve the current international monetary system, promote the improvement of the international reserve currency in the direction of stable value, orderly supply and adjustable aggregate, and fundamentally safeguard global economic and financial stability. 1. The financial crisis broke out and spread rapidly around the world, reflecting the inherent defects and systemic risks of the current international monetary system. For reserve currency issuing countries, domestic monetary policy objectives often contradict the requirements of various countries for reserve currency. Monetary authorities can neither ignore the international function of their own currency and simply consider domestic goals, nor take into account different goals at home and abroad at the same time. It may not fully meet the growing demand of the global economy because of the need to curb domestic inflation, or it may lead to global liquidity flooding because of excessive stimulation of domestic demand. Theoretically, Triffin's dilemma still exists, that is, the issuing country of reserve currency cannot provide liquidity to the world and ensure the stability of its currency value at the same time. When a country's currency becomes the world's primary product pricing currency, trade settlement currency and reserve currency, the country's exchange rate adjustment against economic imbalance is invalid, because most countries' currencies refer to this country's currency. Economic globalization not only benefits from a widely accepted reserve currency, but also suffers from the institutional defects of issuing this currency. Judging from the frequent and intensified financial crisis after the disintegration of the Bretton Woods system, the world may pay more for the current monetary system than it gains from it. Not only the users of reserve currency have to pay a heavy price, but also the issuing countries are paying an increasing price. The crisis is not necessarily the original intention of the reserve currency issuing authorities, but the inevitability of institutional defects. Second, it is an ideal goal of the reform of the international monetary system to create an international reserve currency that is decoupled from sovereign countries and can keep its currency value stable for a long time and avoid the inherent defects of sovereign credit currency as a reserve currency. In the forties of last century, Keynes put forward the idea of establishing an international monetary unit "Bancor" based on 30 representative commodities, but unfortunately it failed to come true. The subsequent collapse of the Bretton Woods system based on the White Plan showed that Keynes's plan might be more far-sighted. As early as the defects of the Bretton Woods system were exposed, the IMF created the Special Drawing Rights (SDR) at 1969 to alleviate the inherent risks of sovereign currency as a reserve currency. Unfortunately, due to the limitation of distribution mechanism and scope of use, the role of SDR has not been fully exerted so far. But the existence of SDR provides a glimmer of hope for the reform of the international monetary system. 2. Super-sovereign reserve currency not only overcomes the inherent risks of sovereign credit currency, but also provides the possibility for regulating global liquidity. An international reserve currency managed by a global institution will make it possible to create and regulate global liquidity. When a country's sovereign currency is no longer used as the scale and reference standard of global trade, its exchange rate policy will greatly enhance the adjustment of imbalance. These can greatly reduce the risk of future crises and enhance the ability to deal with crises. Third, the reform should focus on the overall situation, start with small things and proceed step by step. Seeking a new reserve currency with stable benchmark and acceptable to all countries may be a long-term goal. The establishment of an international monetary unit envisaged by Keynes is a bold vision of mankind, which requires extraordinary foresight and courage of politicians from all over the world. In the short term, the international community, especially the IMF, should at least acknowledge and face up to the risks brought by the current system, and constantly monitor, evaluate and promptly warn. At the same time, special consideration should be given to giving full play to SDR. SDR has the characteristics and potential of super-sovereign reserve currency. At the same time, its expansion and issuance will help the IMF overcome the difficulties it faces in fund, voice and representative reform. Therefore, efforts should be made to promote the distribution of SDR. This requires the active political cooperation of all member States, especially the adoption of the fourth amendment to the Articles of Association of 1997 and the corresponding SDR allocation resolution as soon as possible, so that the member States that joined after 198 1 can also enjoy the benefits of SDR. On this basis, consider further expanding the issuance of SDR. The scope of SDR needs to be broadened to truly meet the requirements of countries for reserve currency. ● Establish the clearing relationship between SDR and other currencies. Change the current situation that SDR can only be used for international settlement between governments or international organizations, and make it a recognized means of payment for international trade and financial transactions. ● Actively promote the use of SDR pricing in international trade, commodity pricing, investment and corporate bookkeeping. It not only helps to strengthen the role of SDR, but also effectively reduces asset price fluctuations and related risks caused by the use of sovereign reserve currency. ● Actively promote the creation of SDR-denominated assets and enhance their attractiveness. The IMF is studying securities denominated in SDR, and if it is implemented, it will be a good start. ● Further improve the fixed value and issuance method of SDR. The range of SDR-denominated basket currencies should be extended to major economic powers in the world, and GDP can also be considered as one of the weighting factors. In addition, in order to further enhance the market's confidence in its currency value, the issuance of SDR can also be changed from artificially calculating the currency value to being backed by actual assets, and consideration can be given to absorbing the existing reserve currencies of various countries as its issuance preparation. Fourth, the centralized management of part of the reserves of member countries by the IMF is not only conducive to enhancing the international community's ability to cope with the crisis and maintaining the stability of the international monetary and financial system, but also a powerful means to strengthen the role of SDR. A trustworthy international institution to centrally manage a part of the global reserve fund and provide a reasonable rate of return to attract countries' participation will play the role of the reserve fund more effectively than countries' decentralized use and fragmentation, and play a stronger deterrent and stabilizing role in speculation and market panic. For participating countries, it is also conducive to reducing the required reserves and saving funds for development and growth. The IMF has many members and is the only international institution in the world whose responsibility is to maintain monetary and financial stability. It can supervise the macroeconomic policies of member countries. It has corresponding professional expertise and natural advantages in managing the reserves of member States. 2. The 2.IMF's centralized management of member countries' reserves will also be a powerful means to promote SDR to play a greater role as a reserve currency. The IMF can consider setting up an open-end fund in a market-oriented way, centrally managing the reserves accumulated by member countries in the existing reserve currency, setting up fund units denominated in SDR, allowing investors to subscribe freely in the existing reserve currency and redeem the required reserve currency when necessary, which not only promotes the development of SDR-denominated assets, but also partially regulates the global liquidity of the existing reserve currency, and can even be used as a basis for increasing SDR issuance and gradually replacing the existing reserve currency.