Question

recount the actual international monetary system and explain its pros and cons. please no handwriting

Answer 1

Answer:  International monetary system- It is the set of international rules that facilitates the international trade such as "Reallocation of capital between nations and cross border investment". It is the operating system of financial environment of the world.

Objective- Is to stabilize the exchange rates and stability of monetary needs of nations so that there may be smooth functioning of financial system.

Pros- Are as following:

1. It provides loan to the member nations and help them in their tough times.
2. It fills the deficit gap of a country's balance payment.
3. It stabilizes the currency system.
4. It also provides assistance and advice to the emerging economies.

Cons- It is a tool for a free market countries only, free market countries are the countries in which there is no intervention of Government, Some members say that IMF is too interventionist while some members say, it is too slow to assist the nations who are in need.