Future internationl monetary system Cover Image

Międzynarodowy system walutowy przyszłości
Future internationl monetary system

Author(s): Małgorzata Mikita
Subject(s): Financial Markets
Published by: Wydawnictwo Uniwersytetu w Białymstoku
Keywords: international monetary system; Gold Standard; Bretton Woods System; non-system; multipolar system; USD; local currencies; bitcoin; global currency; Special Drawing Rights (SDRs);

Summary/Abstract: The collapse of the international monetary system of Bretton Woods ended the period of the unified exchange rate system used by IMF countries. Individual countries of the world began to make their own decisions regarding their exchange rate policies, taking into account only national interests. Their decisions, however, directly affect the functioning of the international monetary system. The current international monetary system (or ‘non-system’) is certainly not a desirable monetary system for the future. Its disadvantages are numerous. The main ones include the high volatility of exchange rates and the increasing demand for the reserve currency, i.e. the US dollar. Moreover, there is a considerable problem with the chronic inequality of the trade balance in many countries, sudden appreciations and depreciations of currencies, and speculative bubbles. The aim of the paper is to present and assess the different directions of reforming the international monetary system, as well as to outline the desired direction of changes. The paper discusses the past and current international monetary systems (the Gold Standard, the Gold Bullion Standard, the Bretton Woods system, and the current ‘non-system’), with their advantages and drawbacks. The author reviews the different ideas for reforming the current system and indicates the one that seems to be the most appropriate.

  • Issue Year: 79/2016
  • Issue No: 1
  • Page Range: 85-99
  • Page Count: 15
  • Language: Polish