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Gold reserves in standard ingots, and also highly liquid foreign assets in freely convertible currency (currency reserves) belong to gold and foreign exchange reserves. Besides, gold and foreign exchange reserves can include precious metals (platinum and silver).

THEORY of FLOATING EXCHANGE RATES. Representatives of this theory – mainly economists of the neoclassical (monetaristic) direction. The essence of this theory consists in justification of the following advantages of the mode of floating exchange rates in comparison with the fixed:

The currency dumping aggravates contradictions between the countries, breaks their traditional economic relations, strengthens the competition. In the country which is carrying out a currency dumping profits of exporters increase, and the standard of living of workers decreases owing to growth of the internal prices. In the country which is object of a dumping development of the branches of economy which are not maintaining the competition to cheap foreign goods is at a loss, unemployment amplifies.

The exchange rate is influenced by rate of inflation. The rate of inflation in the country is higher, the course of its currency if other factors do not counteract is lower. Inflationary depreciation of money in the country causes decrease in purchasing power and a tendency to falling of their course to currencies of the countries where rate of inflation is lower. This tendency is usually traced in the average and long-term plan. Alignment of an exchange rate, its reduction in compliance happen to parity of purchasing power on average within two years.

the exchange concept – exaggeration of a role of the sphere of the address at underestimation of production factors. The exchange concept is shown in the elastic, absorbed, monetary approach of the western economists to the analysis of an exchange rate;

2 – the key currency has to be issued in the quantities sufficient to provide increase in the international money supply for service of the increasing number of the international transactions. Therefore its issue has to surpass gold reserves of the country much more.

Functioning of the Jamaican currency system is inconsistent. The expectations connected with introduction of floating exchange rates were executed only partially. One of the reasons is a variety of possible options of actions of the member countries available to them within this system. The modes of exchange rates do not practice in the pure look during the long period.

Currency interventions were considered as the mechanism of self-adapting of the second MVS to the changing external conditions, similar to transportation of gold reserves for regulation of balance of the balance of payments at the gold standard. Exchange rates could be changed only at emergence of fundamental imbalance of balance. These changes of exchange rates within strong parities were called as revaluation and devaluation of currencies.

Except the real exchange rate calculated on the basis of the relation of the prices it is possible to use the same indicator, but with other base. For example, having taken for it the labor cost relation in two countries.

on the basis of indications of the precautionary indicator of deviations when achievement ¾ limits of rate fluctuations in ECU is fixed, the preventive regulating measures, in particular intra marginal currency intervention by change of interest rates for the purpose of influence on an exchange rate are carried out.

After a long transition period during which the countries could try various models of currency system, new MVS for which considerable fluctuation of exchange rates was characteristic started being formed.

1 – issue of key currency has to correlate with change of gold reserves of the country. The excessive issue of key currency which is not provided with gold reserves can undermine reversibility of key currency in gold and over time will cause a crisis of confidence in it;

Performance of these tasks would promote creation of the European currency organization capable to reflect speculative attacks of the market, and also to constrain fluctuations of the international currency system (especially changes dollar.