The Political Economy of International Money - Tapa dura

The international monetary system has undergone a major transformation since the early 1970s. The suspension, in 1971, of the convertibility of the US dollar into gold was followed by the abandonment of fixed exchange rates and the consequent growth in the importance of commercial banks in the creation of international liquidity. This book, which arose from a research project conducted at the Royal Institute of International Affairs in London, comprises ten chapters written by leading European experts from the academic world, and from banking and international institutions, on different aspects of the world monetary system as it has developed in recent years. They offer both a critical analysis of recent experience and a detailed discussion of possible reforms and likely trends for the future. The various chapters cover the economic recession of the 1970s and 1980s, the influence of monetary theory on policy decisions, the effects of floating exchange rates and balance-of-payments adjustments, the emergence of a multiple currency standard, the changing character of international liquidity and deficit financing, and the relationship between the IMF and the Third World. In conclusion, Loukas Tsoukalis highlights recent developments in the international monetary system and draws general conclusions about the nature and feasibility of world monetary reform. The book is intended as a contribution to the growing debate on the international monetary system and its likely evolution. It will be of interest to students and practitioners of economics, finance, and international relations.