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. Note. Be sure that the speakers are on!. Exchange Rate Regimes. Dipak Abhyankar. Barter System. Advantage No Government Intervention No Paper Currency No ‘managed’ inflation. Barter System. - PowerPoint PPT PresentationTRANSCRIPT
Exchange Rate Regimes
International Finance
TY BMS
Gold Standard Systems
Prof. Dipak Abhyankar9820321404NoteBe sure that the speakers are on!Exchange Rate RegimesDipak Abhyankar
Barter System
AdvantageNo Government InterventionNo Paper CurrencyNo managed inflation
LimitationsDivisibilityBarter System
LimitationsDivisibilityBarter System
Stocking Value for long
LimitationsDivisibilityStocking value for longFair price discoveryBarter System
Experiments
Sea ShellsClay TabletsPrecious Stones
Gold and Silver
MonometalismBimetallism
Gold Standard Systems
Gold Specie StandardActual Use of Gold Coins
Gold Specie StandardActual Use of Gold CoinsAdvantages
People are using real value
No certification required
Exchange Rate is simple and stable
=
Gold Specie StandardActual Use of Gold CoinsLimitations Larger Space requirement for stocking
Inconvenient to Carry Risk of Theft
Gold Specie Standard
Gold Specie Standard
Gold Bullion Standard
Gold Bullion Standard
Currency is pegged with Gold with a specified quantityPegged
Gold Bullion Standard
Unconditional Promise to convert Fiat Currency to GoldPegged
Gold Bullion StandardAdvantagesControlled Money SupplyAnti InflationaryExchange Rate is simple and stableCarries advantages of Divisibility, Stocking of credits and easier pricing
Pegged
Gold Bullion StandardDisadvantagesInflationary measures are not possible, and hence full employment and growth objectives are not achievedDifficult to honor unconditional promise in war and crisis
Pegged
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 standardCurrency A is in Gold Bullion StandardCurrency B
PeggedCurrency A
Gold Standard SystemsGold Bullion StandardPaper (Fiat) Currency Pegged with Gold
Gold Exchange StandardPaper (Fiat) Currency pegged with another currency which in turn is pegged with Gold
Gold Specie Standard`Actual Use of Gold Coins
Money is a headacheand Money is the cure