Formation And Development Of Western International Monetary System

As the international financial crisis deepens, the call for international monetary system on the world stage is getting louder and louder. Many countries criticize the dollar-centered monetary system and vow for collective actions of reform this unfair and deeply flawed system. China as a voice of justice, has also vowed a suggestion of reform, which includes reform of International Monetary Fund and reform of international reserve currency, and decided on the direction of internationalization of RMB. Under this context, there arises the need for China to deepen the understanding of international monetary systems of all history. Only by doing thus, can China seize the historical chance to its benefit and to continue rise up in the world.This paper aims at reviewing the international monetary system under the perspective of economy and politics, so that the lessons of all the system existed in history can be drown for reference of future reform and development of RMB.This paper consists of four parts. The first part is to review the establishment of classic Bimetallic Standard Currency system and the short hegemony of Netherland. By studying the basic structure of Netherland politics and economy and finance, the article will give a general view of how Netherland rose as international financial hegemony. The second and third part is the main part of the paper, which gives a review of gold standard system and British and American hegemony and the processes of establishment. The forth part will analyze these systems of the past and try to give a general suggestion for the reform of international monetary system in the future.