What Are The Two Major Outputs Of Bretton Woods Agreement

In this context, this study has two objectives. First, we are working to study, using a series of benchmarks established for adequacy, the level of adequate reserves in emerging Asian countries. Second, we are also trying to assess the determinants of the international reserve in these countries. Our analyses focus on seven emerging Asian countries: China, Indonesia, South Korea, Malaysia, the Philippines, Singapore and Thailand. This study contributes in different ways to a promising line of standard research. First, in recent years, emerging Asian economies have become a set of forces for global growth; However, experience with the East Asian crisis has shown that these economies are vulnerable to a possible external crisis. These countries are also somewhat bound by a similar economic cycle. That is why we look at these savings in a single data framework for the study. Second, previous studies based on panel data largely ignore the issues of non-endogenous, serial and non-stationary correlation, which could have a serious impact on the reliability of statistical conclusions, as they are based on uncorrected standard errors (see Gosselin and Parent, 2005). We are making a significant econometric improvement and we have analysed the problem as part of the panel`s co-integration.

To obtain an unbiased estimate of long-term parameters, we use the Dynamic OLS (DOLS) estimate in the context of the panel, which effectively corrects the above problems in the savings analysis. Third, the demand for international reserves cannot be analysed in isolation from the country`s money market movements, as the monetary approach to the balance of payments assumes that the imbalance in the national money market explains the movement of monetary reserves (Elbadawi, 1990). With the exception of a few, most previous studies on emerging Asia have not drawn attention to the role of the national monetary imbalance in the demand for international reserves. In this study, after Badinger (2004) and Mishra and Sharma (2011), we appreciate and integrate the national monetary imbalance from the co-integration analysis of the time series. To understand the demand for reserves, we use in our analysis important measures of uncertainty and opportunity risks and costs that help us quantify the reason for the reserve stock in these countries. But even when they appeared after convertibility in 1959, the price of gold was quickly under great pressure. A series of updates followed. These have often been conducted by the major central banks in a new spirit of cooperation. This was supported by the Bank for International Settlements (BIS). The BIS was founded in 1929 with this role in mind, but there were not many signs of collaboration in the 1930s. But in the 1960s, there were more. One of the measures in 1962 was the creation of the Gold Reserve, a cartel that would buy and sell gold to keep its price at 35 ounces.

Some random factors such as the increase in the Gold Reserves of the Soviet Union, just when they were needed, helped the pool for some time. But like all cartels, it broke. This is what happened in 1967/68, when the French were not willing to make another contribution.