
C H A P T E R
CHAPTER OBJECTIVES
2
The International
Monetary System
After studying this chapter, you should be able to:
1 Describe various monetary systems.
2 Understand different exchange rate regimes and their implications.
3 Trace the origin of the euro.
4 Discuss the chronological developments in the exchange rates of the Indian rupee.
5 Highlight the implications of appreciation/revaluation and depreciation/devaluation
of currency.
6 Understand the concept of international liquidity.
7 Discuss the concept of sterilization.
Introduction
A system, in general, is defined as a group of elements that are integrated with the common ...