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International Monetary System
The term “international monetary system” refers to the framework of laws and regulations that control how money is used and transferred both inside and between nations. Every nation has its currency, and the international monetary system sets the standards for how these currencies are valued and exchanged. Economic and financial stability depends on an effective global monetary system, a public good. Over the past few decades, the IMS has supported extraordinary commerce and economic growth. However, the global economy is quickly changing, and the IMS must adjust to the new situation.
The International Monetary Fund (IMF) is a group of 190 nations that promotes international monetary cooperation, ensures financial stability, eases commerce between countries, supports high employment and sustainable economic growth, and lessens poverty worldwide. The IMF keeps an eye on changes in the world economy and monetary system to spot dangers and suggest policies for expansion and financial stability. Additionally, the Fund regularly assesses the financial and economic policies of its 190 member nations.
There are four main categories of international monetary regimes: controlled fixed exchange rate, managed float, free float, and specie standard. In a sense, their approaches to the problematic trinity are different. Misalignments between the world’s most important currencies and the system’s incapacity to foresee or swiftly address global financial crises in emerging nations are the leading causes of dissatisfaction with how the current international monetary system operates. The International Monetary Fund’s (IMF) and World Bank’s (WB) distinct goals and responsibilities are where they mostly diverge. The World Bank’s mission is to combat poverty by supporting middle-income and low-income nations. In contrast, the IMF is responsible for ensuring the stability of the global monetary system.
References
Emmanuel Farhi, M. M. (2017). A Model of the International Monetary System. International Monetary System, 63. Retrieved from https://scholar.harvard.edu/files/farhi/files/ims.pdf
Kumar, R. (2014). International Monetary System. Science Direct, 12. Retrieved from https://www.sciencedirect.com/topics/economics-econometrics-and-finance/international-monetary-system
OER Services. (2021). What Is the International Monetary System? International Business, 10. Retrieved from https://courses.lumenlearning.com/suny-internationalbusiness/chapter/reading-what-is-the-international-monetary-system/

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