Change: There were only format changes (bold, italics, etc.) in this version. See this version for details. (Word count: 194)

Change: -valuing-Valuing currencies in terms of gold-stocks-Stocks of money are tied to gold-gold-Gold is allowed to flow b/w nations if there are balance-of-payment deficits and surplus-devaluationDevaluation: government intentionally lowering the international value of the currencyThe Bretton Woods System: The international   View changes from previous version. (Word count: 172)

Change: an exchange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments in the short run via their buying and selling of particular currencies. More voltatile exchange rates than those during the Bretton Woods times.   View changes from previous version. (Word count: 144)

Change:  The current system: the managed float:Managed floating exchange rate: an exchange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments in the short run via their buying and selling of particular currencies.   View changes from previous version. (Word count: 123)

Change: as international monetary reserves. The current system: the managed float:Managed floating exchange rate: an echange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments via their buying and selling of particular currencies.   View changes from previous version. (Word count: 85)

Change: Moved by welkerjason Apr 15 2008, 10:32 AM EDT

Change: With over 200 nations participating to varying extents in the global economy, complications arise when countless currencies must be exchanged to facilitate trade. In recent times the world's nations have used three different exchange-rate systems. AP students should focus on the two below in their studies:The Bretton Woods System:   View changes from previous version. (Word count: 10)

Change:  float: excessive volatility of exchange rates under the managed float threatens the prosperity of economies that rely heavily on exports. IMF bailouts may encourage nations to undertake risky and inappropriate economic policies since they know that IMF will come to rescuerescue. managed float has not eliminated trade imbalances   View changes from previous version. (Word count: 562)

Change: flexible exchange rates allow for appropriate adjustments to be made more gradually, unlike the abrupt devaluations and depreciations of currencies in southeast Asia in the late 1999s that led to currency crises. Concerns with the managed float: excessive volatility of exchange rates under the   View changes from previous version. (Word count: 562)

Change:  System created in 1944 by major nations in Bretton Woods, New Hampshire. It sought to capture the advantages of the old gold standard (fixed exchange rate) while avoiding its disadvantages (painful domestic macroeconomic adjustments). Also known as the adjustable-peg system. The IMF and pegged exchange rates: Fundamental Imbalances,   View changes from previous version. (Word count: 163)