Stability and Instability in the International Monetary System

  title={Stability and Instability in the International Monetary System},
  author={C. Pearson},
Abstract The international monetary system exhibits elements of both stability and instability. Stabilizing forces include both automatic feedback mechanisms that dampen fluctuations, acceptance of international rules by participants, and deliberate policies to stabilize balance of payments and exchange rates. Sources of instability include inconsistent national economic policies and inconsistent private and public objectives. Sources of instability can be usefully analyzed as endogenous and… CONTINUE READING