International monetary and finance structure Essay

International monetary and finance structure - Essay ExampleWhereas IPE ( world-wide political economics) squirt be understood as a basic concept, it should not be seen as static. In other words, the interactions between states in the economic realm atomic number 18 continually evolving with a massive aim of importance attached to the modality in which international interaction, agreement, and discord takes place. Above all, it must be understood that international political economics is just that international. As such, the fact of the matter is that the agreements, and economic directs of understanding that take place, argon not self-contained instead, they are inherently the control of two or more nations. Naturally, as with any financial agreement or level of cooperation, the interests of the two parties factor heavily in the decisions that are in conclusion agreed upon. Within such a level of understanding, the current state of international political economics deals heav ily with preferential backup agreements, development of trade blocs, debt administration/creation/repayment, and issues pertaining to resources. As can easily be noted, the broad level of impact that IPE has upon the way in which international relations takes place, as swell up as the impacts that it has on trade itself, is profound and can be attributed to a litany of different decisions and choices that individual states make. Yet, instead of IPE merely being concentric upon monetary or domestic economic interests, it must be understood that international political economics has a massive impact on the way in which plastered states within the ball-shaped system are coerced into participation and action that they would otherwise seek to avoid. Whereas the authors reference the fact that engagement with the global power structure is expected, this level of engagement is not always a positive for nations that choose to interact within the current paradigm of international politic al economics. In short, the current level of coercion that exists allows for a great power to set a price and force a poorer nation to meet this demand, revealing a situation in which the wealthier and more powerful state is the ultimate price maker and the client state is the ultimate price taker. The authors further reference the fact that the mechanism of debt is frequently utilized as a means of forcing the will of a particular state or group of states onto a poorer nation. However, beyond trade interaction, the chapter focuses heavily upon the way in which the United States dollar has come to be definitive of the foreign exchange and reserve status. As such, the impact that the dollar has on setting put out and demand ratios and equilibrium point is profound. However, even though this power is profound, the demand for the dollar is not something that is set in stone. Although the United States government necessarily has a great deal of latitude with regard to the amount of do llars that are in global circulation and supply, the demand for these dollars fluctuates based upon fear or confidence, restricting or expanding the global economy as a function of this faith or fear in the international gold of exchange. The chapter moves on to discuss the ways in which currency speculation allows for the individual member of society to have a profound impact on the way in which monetary policy and levels of value are defined. Whereas the preceding analysis has been focused upon defining international pol