الإعلانات

When it comes to the modern international monetary system, you can’t always get what you want. You want exchange rate stability, capital mobility and monetary independence but can only ever achieve two of these at any given time. As we’ve seen, the Gold Standard and Euro combined capital mobility and currency stability but sacrificed monetary independence. Conversely, Bretton Woods married stable exchange rates with central bank autonomy but imposed capital controls so stringent that some travelers resorted to smuggling cash in hollowed loaves. The Washington Consensus, meanwhile, has been marked by free capital flows and monetary policy autonomy but exchange rate instability.

Even allowing for the abovementioned tri-lemma, the current state of the international monetary system leaves a lot to be desired. Chronic imbalances and the potential for long-term dollar devaluation cause considerable anguish to policymakers. Nevertheless, a grand redesign along the lines of Bretton Woods is not likely to be imminent. The world has a great deal invested in the current monetary status quo and there is no clear consensus on how the current system might be replaced. Historically, it has taken a major upheaval such as a world war or the prospect of an immediate national bankruptcy to effect a transition, and it is not clear that the late financial crisis constituted enough of a jolt. However, as witnessed during the twilight years of Bretton Woods, there comes a point where nations take matters into their own hands; where their vested interest in not rocking the boat is surpassed by their desire to escape a sinking boat. The nations of the Arabian Gulf have been mooting a return to a gold-based currency in recent years and it is perhaps significant that the central banks of Russia and China have been steadily accumulating gold. And where governments fear to tread, private citizens have been busily establishing their own monetary system courtesy of bitcoin.
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Question 1 (5 points): Fill the following table with the missing verbs and nouns.

Question 2:  Indicate whether the sentence is true or false by referring to the text. Put T for true and F for false at the end of each sentence. (10 points – 1 point for each correct answer)

1. An effective modern international monetary system encompasses exchange rate stability, capital mobility and monetary independence. ____T______. _________.
2. Bretton Woods married stable exchange rates with capital mobility and monetary independence __________. ____F______.
3. Gold Standard and Euro combined capital mobility and currency stability but sacrificed monetary independence. ____T______. __________.
4. The nations of the Arabian Gulf have been mooting a return to a gold-based currency in recent years. _____T_____. __________..
5.  The world has a great deal invested in the current monetary status quo which has crated  a clear consensus on how the current system might be replaced __________. _____F_____.
6. Private citizens have been busily establishing their own monetary system courtesy of bitcoin. _____T_____. ___________.
7. The Washington Consensus has been marked by free capital flows and monetary policy autonomy but exchange rate instability. _____T_____. __________.
8. . Chronic imbalances and the potential for long-term dollar devaluation cause considerable anguish to policy makers. _____T_____. __________.
9. The central banks of Russia and China have been steadily selling gold.. _________. _____T_____.
10.. Consensus has been marked by free capital flows and monetary policy autonomy but exchange rate instability _____T_____. __________.

Question 3 (5 points – 0.25 of a point for each correct word): Give the economic meaning of the following words in Arabic