Four phases that characterized the evolution of the world monetary system

To date, the international currency system is a complicated, dynamic and transforming system. Naturally, the main countries that give one or another vector that defines the development of the world monetary system, are the countries with the developed economy. This is not surprising because this block of players in all markets of the world has a fundamental advantage in the gold and foreign exchange potential.

It Should be noted that the evolution of the global monetary system includes four full-length stage, which is based on four different international systems of exchange relations. The first stage of development, or rather stage of formation, was the system of so-called gold standard. Under this system any currency that circulated in the domestic market (in most countries) could be easily translated into gold. Formed such relationships quite spontaneously, and it occurred approximately at the end of the 19th century. It is clear that all stages of the development of the global monetary system, including the gold standard, had its own specific characteristics. In the case under consideration is that each currency unit has a specific content of gold equivalent; the convertibility of currency into gold took place, both within the state and outside it; developing a clear correlation between the gold reserves of the country and the corresponding money in circulation. Similar stages of development of the world monetary system implies a fixed rate. It should be noted that a fixed rate over time with the development of economic relations has lost its meaning and was replaced by a system of connected courses.

The Second stage, which has survived the evolution of the world monetary system became a gold exchange standard. The essence of this system is reduced to the possibility of currency exchange on the so-called mottos, i.e. cheques, bills of exchange, banknotes of other countries, which, in turn, can be exchanged directly for gold. At this stage, continuing the further development of the world monetary system, was adopted by the world community at the Genoa conference in 1922. As you know, the role of the exchange currency in this period was presented to the British pound and, of course, the U.S. dollar. Since it began the actual dominance of these currencies in world markets.

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The Next step, which was the evolution of the global monetary system, has become familiar to us gold standard. This system was formed under the pressure of dynamically changing conditions of the world economy during the 30-ies-50-ies of the last century. It should be noted that, in principle, de jure, the system was legalized in 1944 American Bretton woods. In this case, money currency exchanged directly, without gold, and that was fundamentally distinctive feature of the organization of the global monetary relations. It should be noted that the gold in this moment of development, as in previous stages of the development of the world monetary system has maintained its function of the priority and final settlement between the different States.

A Number of global crises, especially the energy in 1974, irrevocably discredited Bretton woods system. In 1976, the evolution of the world monetary system moved to the final stage, at least at the present stage of development. A distinctive feature of this stage was the abolition of the function of gold as a monetary unit. It was sort of a common commodity, however, very liquid. In addition, at this time formed a system of so-called floating rate, which we see today.