
Contents
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I. Introduction I. Introduction
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II. Setting the Scene—1850 II. Setting the Scene—1850
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III. First Steps: The Classical Gold Standard III. First Steps: The Classical Gold Standard
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IV. International Interactions and the Shift to Gold IV. International Interactions and the Shift to Gold
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V. The Changing Role of Central Banks V. The Changing Role of Central Banks
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VI. The First World War and the Post-War Re-establishment of the Gold Standard VI. The First World War and the Post-War Re-establishment of the Gold Standard
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VII. Restoration of Convertibility VII. Restoration of Convertibility
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VIII. Breakdown of the Gold (Exchange) Standard VIII. Breakdown of the Gold (Exchange) Standard
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IX. Bretton Woods and the Move towards a Managed International Monetary System IX. Bretton Woods and the Move towards a Managed International Monetary System
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X. Sequel: From the Managed Float to the Euro X. Sequel: From the Managed Float to the Euro
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XI. Conclusion XI. Conclusion
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27 Putting the ‘System’ in the International Monetary System
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Published:January 2016
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Abstract
This chapter traces the evolution of the International Monetary System (IMS) from the early nineteenth century to the present. In the 1850s, the unit of account in each of the major powers was tied to a fixed weight of one or two precious metals: gold and silver. In response to the demands of increased international trade, the international gold standard was introduced in the 1880s. The two world wars, however, led to the breakdown of the gold standard. After the Second World War, the major powers decided to form the Bretton Woods System (BWS), which created the International Monetary Fund (IMF). But just like the gold standard, the BWS collapsed in a series of crises from 1968 to 1971. The BWS was then succeeded by the managed floating non-system, a system similar to the gold standard and used is used in the Eurozone.
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