International Currency System And IMF:Challenge,Response,Reform

Usually, the international monetary system is refers to control monetaryrelationship rules and institutions, as well as various international trade and payment,which is based on the establishment of a set of institutional arrangement and practice.After the Second World War, the international community needs to establish a neworder to secure the stability and orderly development of the world economy, as wellas a smooth trade between countries with the resources to enable them to achieve theeffective development and utilization based on the original structure of internationalpolitics economy and monetary finance order. With the Bretton Woods Conference in1946, the modern international monetary system and its subsidiary bodies, which wascalled International Monetary Fund (IMF) were born. Since then, the internationaleconomic activities and international trade open a new chapter under the order whichwas established by the international monetary system the international monetary.This paper reviews the historical evolution and development of the internationalmonetary system, and discussed the initial design concept, functions and subsequentchanges of IMF under the framework of the international monetary system.Especially with the collapse of Bretton Woods System in1970’s and the backgroundof floating exchange rate system had replaced the traditional dollar-based fixedexchange rate one, the author made a detailed review of some classic case on IMFsolving the economic crisis in the region of the developing countries through theintroduction of the specific functions and roles of IMF in the international monetarysystem. On this basis, the author made a research and prospect on the frame structure,nature and characteristics of the present international monetary system, also on thereform and reconstruction of the international monetary system and IMF under thebackground of global financial crisis. At last, in particular, the article generallyanalyzed the role orientation, the principles and standpoints, as well as the strategiesand countermeasures at present China’s participation in the reform and reconstruction of international monetary system which based on the hot topic of China’s activeparticipation in the reform and reconstruction of the international monetary systemunder the background of the global financial crisis. The author hopes that, with Chinaas the representative of the developing countries can agree in coordination, toreconstruct the international monetary system and to build new order of internationaleconomy by their own efforts in future so as to seek more discourse right anddevelopment space for their own in today’s economic globalization and internationaleconomic order. Therefore, it can fundamentally reverse the adverse situation that thedeveloping countries subject to the developed ones in the international economy andtrade activities over a long term.To make a long story short, this paper aims at making a detailed, nearly70yearhistorical review of the evolution and development of international monetary systemas well as the maturity and perfection of IMF’s governance structure via a specialangle of international economic law. The author hopes that it can further standardizeand restrain of international trade also with economic activities through its perfectionof its own rules and aggrandizement of its legal system not only by the internationalmonetary system and IMF in the process of solving regional economic crisis indeveloping countries, but also in response to the challenge of recent global financialcrisis. As the conclusion of this paper in the words, reforming and reconstructinginternational monetary system should be earnestly needed to strengthen internationalfinancial regulation and the reform of international financial organizations——theestablishment and perfection of rules and legal system will be an important norm forfuture international economy activity. In addition, the author hopes that in the premiseof theoretical integration and complementarity of the two big disciplines——law andeconomics, we can make a more careful and thorough reflection on the theoreticalproblem on the development and prospect of current international monetary system,as well as China’s participation in the reform and reconstruction of internationalmonetary system.