【学习笔记】International Finance 国际金融论研究学习笔记-5

Part I

Basics ofInternational Finance --5

Ch2 --2

InternationalMonetary System

Evolution of theInternational Monetary System --3

(2)Classical GoldStandard: 1875-1914

（①）Duringthis period in most major countries:

        –Gold alone was assured of unrestrictedcoinage.

        –There was two-way convertibility betweengold and national currencies at a stable ratio.

        –Gold could be freely exported or imported.

（②）Theexchange rate between two country’s currencies would be determined by theirrelative gold contents.

          For example, if the dollar is pegged togold at U.S. $30 = 1 ounce of gold, and the British pound is pegged to gold at￡6 = 1 ounce of gold, it must be the case that the exchange rate is determinedby the relative gold contents:

                $30=1 ounce of gold =￡6

                $30=￡6

                $5 =￡1

（③）Highlystable exchange rates under the classical gold standard provided an environmentthat was conducive to international trade and investment.

（④）Misalignmentof exchange rates and international imbalances of payment were automaticallycorrected by the price-specie-flowmechanism.

Price-Specie-FlowMechanism

1，Suppose Great Britain exports more toFrance than France imports from Great Britain.

2，This cannot persist under a gold standard.

        –Net export of goods from Great Britain toFrance will be accompanied by a net flow of gold from France to Great Britain.

        –This flow of gold will lead to a lowerprice level in France and, at the same time, a higher price level in Britain.

3，The resultant change in relative pricelevels will slow exports from Great Britain and encourage exports from France.