Finance

The Role of the International Monetary System in Financialization Jane DArista Financial Markets Center Paper prepared for the Political Economy search Institute (PERI) conference on Financialization of the Global Economy, University of Massachusetts, Amherst, December 7-8, 2001  intro Recent interchanges of global architecture have focused on a wide range of financial issues without touching on the most basic element of the global constitution: the quality of the factor of payment in cross-border transactions. The monetary aspect of problems in spite of appearance the existing international system continues to be relegated to the familiar res publica of earlier debates over frozen versus floating exchange pass judgment. Advocates of capital boards, the adoption of one nations currency by another ( dollarization) and the formation of currency blocs see these monetary arrangements chiefly as a means to achieve effective fixed exchange rate regimes. Those who favor floating exchange rates advocate closer coordination of the monetary and fiscal policies of the major industrial countries as a means for preventing overshooting and persistent over- and undervaluation.

Other key aspects of the international monetary system are assumed to be responsibilities or functions of national monetary authorities or hidden financial institutions and are largely ignored when global architecture is discussed. This paper focuses on the veritable international monetary system and on various proposals that would change or alter the current system. It attempts to evaluate these monetary arrangements in terms of how they affect harvesting and credit allocation in the global economy and whether they stir or impede financial and economic stability. It concludes with a discussion of alternative proposals for reforming the monetary architecture by changing the means of payment in the global economy. The current system: dollar hegemony The usual reference to the dollars dominance is in terms of its role as... If you want to get a amply essay, order it on our website: Orderessay

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