Prof. Pratik Gohil

Bretton Woods System and Current Exchange Rate Arrangements Historical Context: The Bretton Woods System was established in 1944 during a conference held in Bretton Woods, New Hampshire, United States. This system was a pivotal moment in the post-World War II era when global leaders came together to create a new international monetary order. Key Features: 1. Fixed Exchange Rates: Under this system, currencies were pegged to the US dollar, which was in turn linked to gold. Countries agreed to maintain their exchange rates within a narrow margin of fluctuation against the dollar. 2. International Monetary Fund (IMF): Created to promote exchange rate stability and provide short-term financial assistance to countries facing balance-of-payment problems. The IMF also aimed to encourage global economic cooperation and avoid competitive devaluations. 3. World Bank: Established to provide long-term loans for the reconstruction of war-torn countries and support their economic development. 4.

Evolution of International Monetary System and Gold Standard The evolution of the international monetary system spans centuries, undergoing significant transformations influenced by historical events, economic theories, and global politics. Here's a detailed overview: 1. The Gold Standard (1870-1914):   This system pegged currencies to gold, ensuring their convertibility. It promoted stability but constrained economic flexibility during economic downturns. 2. Interwar Period (1914-1944):   The gold standard collapsed during WWI, leading to volatile exchange rates and economic instability. Attempts to revive it failed, leading to competitive devaluations and trade barriers. 3. Bretton Woods System (1944-1971):   Established after World War-II, this system created the International Monetary Fund (IMF) and the World Bank. Currencies were pegged to the US dollar, which was convertible to gold. It aimed to stabilize currencies, facilitate trade, and provide financial assistance to count

I Issue of Shares

  IIntroduction to Corporate Finance Meaning of Corporate Finance:              Corporate finance deals with the raising and using of finance by a corporation. It deals with financing the activities of the corporation, capital structuring and making investment decisions.                 Henry Hoagland expresses the view that "corporate finance deals primarily with the acquisition and use of capital by business corporation."                 It includes financial planning, study of capital market, money market and share market. It also covers capital formation and foreign capital. Even financial organisations and banks play vital role in corporate financing.  Importance of Corporate Finance:  Helps in Decision Making  Helps in Raising Capital  Helps in Research and Development  Helps in Smooth Running of Business  Brings Co-ordination between Various Activities  Promotes Expansion and Diversification  Managing Risk  Replace Old Assets  Payment of Dividend and Interest  Pay