The main cause of collapsing of the Bretton woods system Essay

The main cause of collapsing of the Bretton woods system - Essay Example re of the system was a promise each country made to all that their monetary policies would keep the currency of the country close to a fixed value (within 1%) to gold. The IMF would have the authority to close temporary payment imbalances between countries and would monitor the fiscal activities of other nations. While the system worked well for several years, it collapsed in 1971 once the United States pulled out from the gold standard (Bird, 1994). The simplest cause of failure in economic terms is that the system was useful for the time it was created but it was far too optimistic of the creators of the systems that all other things would remain the same. Without a doubt, economic realties change for us on a daily basis even though the majority of economic activity can be explained by the process of supply and demand. The creators of the system thought that the system would be large enough to control and contain market forces and economic systems but they learnt quickly that while market forces take the upper hand to established systems. While the final cause of failure was the American pullout from the system, the foundations were being weakened long before the event. The first change was the monetary interdependence which countries faced with respect to each other and the convertibility of the Japanese Yean and the Western European countries. This made it possible for banks and monetary organizations to take part in large financial transactions further adding to the financial interdependence of various countries (Cooper & Sneddon, 2001). Banks are able to make huge transfers of capital from one country to another for investment and lending purposes but that money can also be used for currency speculation. In the Bretton Woods system, exchange rates were more or less fixed and countries were hesitant in revaluing their currencies (Bird, 1994). Speculators could therefore convert large sums of money from a soft to a hard currency hoping to gain value when the

Computer Crimes Research Paper Example | Topics and Well Written Essays - 500 words

Computer Crimes - Research Paper Example Consumers have their own personal data and they have their own personal communication taking place on the computer through the internet. Computer viruses and hacking programs tend to affect all these innocent victims and they become helpless in all these situations. They lose their confidential data and at times many organizations may lose their back up data and end up in many official and organizational level problems. Credit transaction information can be hacked easily by professional hackers and it causes huge losses to the consumers, companies and as well as government agencies. Government agencies have their own official transactions taking place on the computers and they transfer their information through the internet as well. When these various types of computer crimes are taking place it affects the government and at times may affect the country as well. All these innocent victims tend to get targeted in a serious manner when computer crimes are taking place. There are many computer manufacturing companies that are operating around us. These computer companies while manufacturing the computers are not able to develop programs that may protect the computers from the hackers. The hackers are always up with new types of programs and viruses that tend to affect the computer users and cause a lot of damage to them. The computer manufacturers are not able to have programs that show evidence of tracking down the hackers in a fast mode. It is extremely difficult to trace the hackers from where they have operated the viruses or hacked the computers of all the innocent people and organizations. The computer manufacturers are not able to develop programs that can protect their valuable users from the various computer crimes that are taking place in the society. Any user that is using the computer and the internet are prone to be attacked by hackers and various types of viruses. The antivirus