The Study On The Mechanism Of Currency Crises With The Perspective Of The International Monetary System

Since the collapse of the Bretton Woods System in the 70s of 20th century, the international monetary system has entered in Jamaica System, in which floating exchange rate becomes legitimate. Since then, the international monetary system has gone through from the international gold standard to Bretton Woods System, then the Jamaica System. Every evolution was accompanied by some form of currency crisis. Especially in the second half of 90's of last century, the worldwide currency crises broke out frequently. So the study of the mechanism and contagion path and preventive measures of various types of currency crises has aroused the attention of the theory circle once again, and the rethinking of the effectiveness of Jamaica System. Along with the smooth startup of the euro, the expansion of dollarization in Latin America and evolution of East Asian monetary cooperation, the international monetary system is entering a new stage, which is characterized by the regionalization and internationalization of U.S., the Europeanization and internationalization of euro, co-operation of East Asian currencies.In this paper, with the perspective of the evolution of international monetary system, a detailed analysis of the mechanism of currency crises under each type international monetary system will be made. This paper includes several parts: first, some important concepts of the thesis have been defined, a theoretical overview of currency crisis has been finished; then, we have described the history of the international monetary system; later, three chapes have been arranged to discuss the mechanism of currency crisis under fixed and floating and intermediate exchange rate system respectively. The part of the fixed exchange rate system mainly includes the analysis of the collapse of the international gold standard system, the Bretton Woods system and the the European Monetary System; in the part of the floating exchange rate system, the volatility problem under freely floating exchange rate system has been studied; the part of the intermediate exchange rate system mainly includes the analysis of currency crises in regional dollar standard system and the currency board system. And finally, we have analysed the inevitability of the appearance of new type regional monetary cooperation patterns, and how these cooperations avoid currency crises.Based on the perspective of the evolution of the international monetary system, we have analysed the deep-rooted reasons of typical currency crises, then we find that the evolution of the international monetary system follows the principle of negation of negation, changes between the fixed and the floating exchange rate. The international monetary system has also experienced a process from spontaneously formed to artificially established. After the study of the mechanism of typical currency crises under different exchange rate regimes, we obtain the conclusion that it is unfeasible to use gold or some strong currency as international currency standard. The future trends of reform must be the creation of a new international currency which is independent of gold and some strong currency, this reform can avoid the inherent defects of monetary sovereignty as the international currency. While the appearance of international and regional monetary cooperation is a necessary step in the evolution of international monetary system.