Monitoring the International Monetary System: Its Development in the West, and Future in the East
Journal Title: Academic Journal of Economic Studies - Year 2016, Vol 2, Issue 2
Abstract
The “gold standard” is frequently mentioned in text books, but few without an economics background can fully understand it. This paper thus begins in 1896, when U.S. Presidential candidate William Jennings Bryan declared, “You shall not crucify mankind on a cross of gold.” Since going back to the middle ages, the world has had numerous monetary systems, which are here explained in comprehensible terms. A modern reoccurring idea is to return to some form of the gold standard, while some argue for switching to the Chinese yuan or another international reserve currency, which the International Monetary Fund (IMF) will adopt in their Special Drawing Rights starting in October, 2016. This paper is normative in that it comments on the current international structure, but uses economic principles to support its argument in favor of an internationally strong dollar. It thus traces the history of a topically contentious subject, with a basic regression indicating important predictive factors for the future. It offers that a new gold standard would not be in the world’s interest, interfering with monetary policy, while emerging market countries would be best to import more and financially deepen, which the regression shows was why the Chinese yuan was adopted by the IMF, then looking ahead to other parts of Asia and towards bitcoins.
Authors and Affiliations
Todd J. Barry
Keywords
Related Articles
- EP ID EP177952
- DOI -
- Views 130
- Downloads 0
Financial Stability and Credit Creation in Nigeria: An Econometric Evaluation
The study empirically examines a co-integrated model of financial stability of Nigerian financial sector in relation to credit financing over the sample period 1990 to 2016. The methodology of error correction was adopte...
Barriers to Green ICT Adoption in Romania
The efficient use and disposal of digital technologies are key factors in economic and social development. The concerns regarding the development and use of information and communication technologies (ICT), without negat...
The Impact of R&D Collaboration on Technological Innovation in European Countries
The present study examines the impact of collaboration in research and development (R&D) on technological innovation in emerging and developing countries. For this purpose, we use data on R&D expenditures performed by th...
Cluster Analysis of Total Assets Provided By Banks from Four Continents
The paper analyzed the total assets in 2016 achieved by the strongest 96 banks from 4 continents: Europe, America, Asia and Africa. It aims to evaluate the level of total assets provided by banks in 2016 and continental...
Determinants of Academic Performance of Grade 10 Students: Empirical Evidence from High Schools of Tigray Regional State
This study examined determinants of academic performance of grade 10 students in Tigray. A sample of grade 10 students in high schools of 17 Woredas in 2015 academic year was used following probability sampling technique...