International Monetary System And Its Effects On The Economy

This fills a gap in introducing the reader to economical problems that were triggered due to this banking collapse such as macroeconomic problems. Which I will include in to paper to furthermore give the reader a more global approach in how the economy plays a significant role in our day to days lives.

In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brother and AIG. These collapses not only influence own countries but also international area. Hence, the intervention of governments by changing and

In the beginning of the use of fiat currency, many governments backed the value of the currency with gold. For a while, thirty five United States Dollars could be traded for 1 Troy ounce of gold at a bank. Today however, the USD is no longer backed by gold. Most money today is “just worthless paper”, and if the government endorsing that money fails, it turns that currency into useless paper. (This is causes hyperinflation and recently happened to the Zimbabwean dollar.)

The financial crisis of 2008 has been described as the worst financial crisis the world has seen since the great depression, but there are now murmurings of the potential for an even greater financial crisis, a currency crisis, caused by the demise of the US Dollar. The Dollar has been the reserve currency of the world since it took over from the Pound at the end of world war two, but we examine if it is about to crash spectacularly?

Monetary development is something that everybody around the globe battles with ordinary. A great many people are unmindful in respect to what 's genuinely happens in the economy as to expansion, unemployment, and loan costs; these things are all directed by a national bank called the Federal Reserve System. The arrangement that I will talk about in this paper chooses if unemployment, hobby, and swelling declines or increment is fiscal strategy. Money related arrangement chooses what value a man pays for a thing at the store, the amount of premium a man will get charged on an advance for an auto. These are all things that no one genuinely asks themselves, a great many people simply search around and pick the best value or the best financing

Canada is an easy country to relate to because it borders America and has a similar currency system in place. In Canada, each penny cost 1.6 cents to produce, which is very similar to America’s situation (Canada). However, in 2012, Canada decided to stop their production of their penny because they were losing too much money on a coin that only few use anymore (Sommer). In fact, Canada reports that they lost 11 million Canadian dollars each year due to its production (Canada). To adjust to this sudden change, Canada looked at the plans of other countries who have also gotten rid of currency that cost too much to produce, like Sweden and New Zealand

In an economy which is globalized to such an extent it is difficult to know all the linkings, and the connections between events and institutions are often impossible to predict. Many countries in Eastern Europe, for instance, are still heavily reliant on Greek banks, and if those banks collapse the EU faces the risk of a chain reaction of financial turmoil that could easily spread to the rest of the global economy (TIME, June 29, 2015).

According to the specialists, there are many reasons for this global financial crisis. We try to focus some prime reasons behind this

selected currencies is one of the approaches to make money. For the past many years,

In 2008, the world experienced a tremendous financial crisis which is rooted from the U.S housing market. Moreover, it is considered by many economists as one of the worst recessions since the Great Depression in 1930s. After bringing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It ruined economies, crumble financial corporations and impoverished individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers and AIG. These collapses not only influenced own countries but also international scale. Hence, the intervention of governments by changing and expanding the monetary

This paper was prepared for GD530 Economics and the International System, taught by Professor Snow

Immigration of refugees into other economies has been an issue in the affected countries that play a vital role in the harboring of refugees. It goes without saying that the influx of refugees comes with some standing effects that may influence the financial system of the recipient countries positively or negatively. Having been an issue for some time European economies are affected by the influx of immigrants. The resulting effects are quite varied and influence some spheres in the economics scale mainly on how the influx of refugees impact the public finances, how the refugees affect the labor markets and what effects it has on healthcare systems. This paper focuses on the diverse effects of the refugees on the European economies at large.

The features of economic environment have direct relationship with economic activities .Income and wealth is the components of the economic environment.

For the past 15 years, China has been in the limelight as one of the world’s fastest growing economy. The International Monetary Fund (2014) reported China’s average growth rate at an average of 10% over the past 30 years. The market economy of China is the world’s second largest economy by nominal GDP based on the World Bank Data. In spite of this fast growing economy, the country, like any developing country has experienced rough inflationary dynamics, and to target this, a mix of Monetary Policies have been adopted. Reserve Ratio Requirement (RRR) has an evolving role as a Monetary Policy tool to target these inflations. Ma, et al. (2011), presented that The People’s Bank of China (PBC) has actively changed its

“If you owe your bank a hundred pounds, you have a problem; but if you owe it a million, it has.(1)”