At the beginning, the value of the goods was expressed in terms of other goods, C. - with-D. an economy based on the exchange between various participants of the market. The obvious limitations of such a system encouraged to establish more trade flow means to a stage towards the beginning in the history, to place a common reference mark of value. In various economies, all the teeth to the feathers with pretty stones achieved this goal, but soon metals, in particular gold and money, were established as admitted methods of payment as well as a reliable storage of value.
In the beginning, coins were simply monnay?es of preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Average Ages. Such IOUs, often presented successfully by the force than persuasion were the base of the modern currencies.
Before the First World War, the majority of the central banks supported their currencies with convertibility with gold. Although the paper money could always be exchanged for gold, actually this often did not occur, stimulating the sometimes disastrous concept that there was not necessarily a need for full cover in the central reservations of the government.
Sometimes, the supply going up balloon in paper money without gold cover led to political instability devastator of inflation and to result. To protect from the local national interests, of the orders of foreign currencies were presented more and more to prevent forces of the market from punishing monetary irresponsibility.
In the advanced stages of the second world war, the agreement of Bretton Woods was concluded on the initiative from the United States in July 1944. The conference of Bretton Woods rejected the suggestion of John Maynard Keynes for a new currency of reserve of the world in favour of a system established on the US dollar. Other international institutions such as the IMF, the World Bank and GATT (general agreement on tariffs and the trade) were created during the same time as the incipient winners of required WW2 a manner of avoiding the monetary crises of destabilization which led to the war. The agreement of Bretton Woods had as consequence a system of the rates which partly restored the gold standard, fixing the US dollar At USD35/oz and fixing the other principal currencies at the dollar - and were designed to be permanent.
The system of Bretton Woods concerned the increasing pressure while the nation's economies moved in various directions during the years '60. A certain number of realignments maintained for a long time the system alive, but thereafter Bretton Woods crumbled with the beginning of the year seventy following the President Nixon the 'suspension of S of the convertibility of gold in August 1971. The dollar was not appropriate more as single international currency to one moment when it was under the serious pressure to increase the budget of the USA and the trade deficits commercial.
The following decades saw the trade of foreign currencies developing in larger global market by far. Restrictions on the movements of capital were removed in the majority of the countries, leaving the forces of the open market to adjust rates of foreign currencies according to their perceived values.
But the idea of the rates is by no means dead. The EEC (European economic community) presented a new system of the rates in 1979, the European Monetary System. This attempt to fix foreign exchange rates met the close extinction in 1992-93, when the driven back economic pressures forced devaluations of a certain number of weak European currencies. Nevertheless, research for stability continued in Europe with the attempt replaced to fix not only currencies but to replace really good number of them by the euro in 2001.
The lack of durability in rates of foreign currencies fixed gained the new relevance with the events in Southeast Asia in the last part of 1997, where currency after the currency was devaluated against the US dollar, Leaving other rates, in particular in South America, looking at very vulnerable.
But while the commercial companies had to face an environment much more volatile of currency these last years, the investors and the financial institutions found a new court of play. The size of the markets of foreign currencies now reduces any other market of capital by a great factor. It is estimated it that more than of USD 3.000 billion is traded day laborer, much more than the world 'the current markets bond of S and obligations combined.
In the beginning, coins were simply monnay?es of preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Average Ages. Such IOUs, often presented successfully by the force than persuasion were the base of the modern currencies.
Before the First World War, the majority of the central banks supported their currencies with convertibility with gold. Although the paper money could always be exchanged for gold, actually this often did not occur, stimulating the sometimes disastrous concept that there was not necessarily a need for full cover in the central reservations of the government.
Sometimes, the supply going up balloon in paper money without gold cover led to political instability devastator of inflation and to result. To protect from the local national interests, of the orders of foreign currencies were presented more and more to prevent forces of the market from punishing monetary irresponsibility.
In the advanced stages of the second world war, the agreement of Bretton Woods was concluded on the initiative from the United States in July 1944. The conference of Bretton Woods rejected the suggestion of John Maynard Keynes for a new currency of reserve of the world in favour of a system established on the US dollar. Other international institutions such as the IMF, the World Bank and GATT (general agreement on tariffs and the trade) were created during the same time as the incipient winners of required WW2 a manner of avoiding the monetary crises of destabilization which led to the war. The agreement of Bretton Woods had as consequence a system of the rates which partly restored the gold standard, fixing the US dollar At USD35/oz and fixing the other principal currencies at the dollar - and were designed to be permanent.
The system of Bretton Woods concerned the increasing pressure while the nation's economies moved in various directions during the years '60. A certain number of realignments maintained for a long time the system alive, but thereafter Bretton Woods crumbled with the beginning of the year seventy following the President Nixon the 'suspension of S of the convertibility of gold in August 1971. The dollar was not appropriate more as single international currency to one moment when it was under the serious pressure to increase the budget of the USA and the trade deficits commercial.
The following decades saw the trade of foreign currencies developing in larger global market by far. Restrictions on the movements of capital were removed in the majority of the countries, leaving the forces of the open market to adjust rates of foreign currencies according to their perceived values.
But the idea of the rates is by no means dead. The EEC (European economic community) presented a new system of the rates in 1979, the European Monetary System. This attempt to fix foreign exchange rates met the close extinction in 1992-93, when the driven back economic pressures forced devaluations of a certain number of weak European currencies. Nevertheless, research for stability continued in Europe with the attempt replaced to fix not only currencies but to replace really good number of them by the euro in 2001.
The lack of durability in rates of foreign currencies fixed gained the new relevance with the events in Southeast Asia in the last part of 1997, where currency after the currency was devaluated against the US dollar, Leaving other rates, in particular in South America, looking at very vulnerable.
But while the commercial companies had to face an environment much more volatile of currency these last years, the investors and the financial institutions found a new court of play. The size of the markets of foreign currencies now reduces any other market of capital by a great factor. It is estimated it that more than of USD 3.000 billion is traded day laborer, much more than the world 'the current markets bond of S and obligations combined.
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