After studying this chapter, you should be able to:
Describe various monetary systems.
Discuss different exchange rate regimes and understand the IMF's classification of these regimes.
Trace the emergence of the euro.
Discuss the chronological developments in the exchange rates of the Indian rupee.
Highlight the implications of appreciation and depreciation of currency.
Understand the concepts of international liquidity and international reserves.
A system, in general, is a group of elements that are integrated with the common purpose of achieving certain objective(s). The international monetary system consists of the laws, rules, monetary standards, instruments, ...