Consider the following scenario: You have been asked by a local college to write a lecture that explains the gold standard and addresses the functions of the world's major foreign exchange markets.
Write a 1,050 to 1,400 word summary detailing the functions of the world's major foreign currency exchange markets. Discuss the positive and negative aspects of using a gold standard.
Check these articles.
http://en.wikipedia.org/wiki/Gold_standard
http://economics.about.com/cs/money/a/gold_standard.htm
http://www.econlib.org/library/Enc/GoldStandard.html
To write a lecture on the gold standard and the functions of the world's major foreign exchange markets, you will need to gather information from reliable sources and organize it into a coherent summary. Here's a step-by-step guide on how to approach this task:
1. Understand the gold standard:
- Begin by researching the concept of the gold standard. Look for credible sources such as academic articles, textbooks, or reputable websites that provide an overview of what the gold standard is and how it works.
- Learn about its historical significance and when and where it was implemented.
- Understand the basic principles of the gold standard, such as the fixed exchange rate, convertibility of currency into gold, and the role of central banks in managing reserves.
2. Research the major foreign exchange markets:
- Identify the major foreign exchange markets in the world. These include markets in London, New York, Hong Kong, Tokyo, and Singapore, among others.
- Explore the functions of these markets. Understand how they facilitate the trading of currencies, provide liquidity, determine exchange rates, and enable hedging and speculation.
- Look into the key participants in these markets, such as commercial banks, central banks, multinational corporations, institutional investors, and retail traders.
- Examine the different types of transactions that take place, including spot transactions, forward contracts, futures contracts, options, and swaps.
3. Consider the positive aspects of using a gold standard:
- Identify the benefits attributed to the gold standard, such as stability in exchange rates, reduced inflationary pressures, and discipline on government spending.
- Search for case studies or historical examples that illustrate the advantages of the gold standard.
- Highlight empirical evidence or research findings supporting these positive aspects.
4. Explore the negative aspects of using a gold standard:
- Understand the criticisms and drawbacks associated with the gold standard, such as limited flexibility in monetary policy, vulnerability to supply and demand shocks, and difficulties in managing economic crises.
- Look for evidence or arguments that challenge the effectiveness or practicality of the gold standard.
- Consider the impact of the Great Depression and the abandonment of the gold standard during the 20th century as relevant historical events.
5. Structure your summary:
- Begin with an introduction that provides an overview of the lecture's content, the importance of understanding foreign exchange markets, and the role of the gold standard in the context of international finance.
- Divide the main body of your lecture into two sections: one that discusses the functions of the world's major foreign exchange markets, and another that explores the positive and negative aspects of using a gold standard.
- Use subheadings and bullet points to organize your thoughts and make your summary more readable.
- Provide examples, statistics, or anecdotes throughout your summary to illustrate key points and support your arguments.
- Conclude your lecture with a summary of the main points covered and, if appropriate, offer your own opinion or recommendations.
6. Proofread and edit:
- Review your summary to ensure it flows logically and coherently.
- Check for grammatical errors, spelling mistakes, and consistency in formatting.
- Make sure your writing is clear and concise.
By following these steps, gathering relevant information from credible sources, and organizing your lecture content effectively, you will be able to write a comprehensive summary that explains the functions of the world's major foreign exchange markets and discusses the positive and negative aspects of using a gold standard.