Trade and Foreign Exchange Markets
Towards the end of the Second World War, the United States of America took the initiative and the lead in laying the foundations for a world economic order which still governs economic relations between the Western countries today1. Despite the numerous strains and setbacks to which world trade has been subject over past decades, it remains a fact that the liberal principles laid down at that time created the basis for an unprecedented expansion of mass prosperity in the countries of the West. The Western World today has an integrated foreign exchange and capital market system which embraces all the main trading nations. Trade connects the remotest areas with the economic centres of Asia, Europe and America; and despite many obstacles, the international mobility of labour has not come to a standstill.
KeywordsExchange Rate Monetary Policy Central Bank World Economy European Central Bank
Unable to display preview. Download preview PDF.