Today, there are about two hundred countries.All of them - the subjects of the global economy.All States, moreover, are equal to each other legally.
first national foreign exchange market was formed in the 19th century at the end of the industrial revolution.Its basis is the gold monometallism a gold coin standard.Corporate image of the first currency structure was formalized at the Paris conference, the intergovernmental agreement signed in 1867.According to him, the only international recognized form of money gold.At the same time it fulfilled a direct function of money.Currency and monetary system (both global and national) were identical.The difference, however, was just that, marketing, coins accepted as payment, in accordance with their weight.
Paris monetary system inherently had several structural principles.
First of all, was the base gold standard.Second, each currency was its content.In accordance with their defined gold parities.All currencies freely convertible into gold.It thus was used as a generally recognized international money.Third, the Paris monetary system provides for a regime of exchange rates, floating freely in view of supply and demand on the market within the gold points.When the market rate falls below par, the debtors shall pay in gold.
Paris monetary system is embedded in a gold standard value of certain natural regulator of the production, management mechanism of foreign economic relations, balance of payments, monetary, international payments.This standard showed their relative efficacy to the First World War, when the lever is operated, to equalize the balance of payments and monetary policy.
Paris monetary system forced states with a deficit balance of payments, to conduct a deflationary policy.In this country we restricted the money supply in circulation at low tide gold abroad.However, for example, in the UK, despite stable "chronic" deficit in the balance of payments from happening net outflow.For almost a hundred years before the First World War only the Austrian thaler and American dollar devaluation exposed.At the same time the French franc as the pound sterling, retained its gold content unchanged from 1815 to 1914.Applying in international payments the priority role of the pound sterling, the United Kingdom of offsetting the balance of payments deficit with the help of the national currency.
characteristic is the fact that in the midst of the triumph of the gold standard calculations of the international class is mainly made using drafts.These drafts were discharged in the national, mainly English, currency.At the same time gold has long been used in the passive balance of payments in the balance of international payments.By the end of the 19th century there was a tendency to a decrease in the money supply and official reserves in gold shares.The precious metal has become displaced swap credit money.The use of a deflationary policy in the regulation of the exchange rate, lowering prices and increasing unemployment provoked social unrest.
Over time, the gold standard has ceased to meet the framework of growing economic ties and a market economy.Start of the First World War coincided with the crisis of the international system.This funding military expenditures carried out (together with loans, taxes, inflation) with gold serving as international money.
