The transforming monetary function of gold in the modern global currency system

Abstract

The process of demonetization fixed by the Jamaica Agreement is rather controversial, which has been confirmed by the 2008 crisis. This crisis can be considered a trigger for returning back to the world monetary system. With all these factors taken into account, it is necessary to review the status of in the modern currency system. That is why the subject of this paper is up-to-date and relevant to the current situation. The paper considers the modification of the 's function, on the one hand, as a way to sort out the problems in the world monetary system; on the other hand, as a response to new trends. In order to validate this hypothesis, the authors conducted a retrospective analysis of all available world monetary systems, and characterized the using the principles of the systemic analysis. As a result, the authors found out the key trends of the development, the main factors that determine a pricing trend in the postcrisis period. Revealing such potential instruments of using in the system of international payments and lending relations as "digital currencies", loans secured by , " loans", deposit interests paid in , the authors made a conclusion that keeps its function as a legal tender. The practice of quoting in USD has allowed to assume that still indirectly implements the function of account unit. The changing behavior of countries that are the owners of the main reserves, which now have now become buyers, and the aspiration of China, Russia and other developing countries to reallocate the world reserves confirm a new role of as global . Thus, under circumstances of ongoing demonetization has actually gained the status of the most important international reserve asset. The above-stated conclusion is also supported by the decisions taken by IMF and other international organizations to regulate the and to assign a new status to in the banking sector. The strengthening monetary functions of in the world currency system has brought back discussions about returning to the standard. This paper focuses on the arguments in favor of this proposal, and the factors impeding this process in modern conditions. However, the monetary functions of in the world currency system should stay a topic for debate, because the results of the study can be used for searching for effective ways to improve the world monetary system in order to make it more stable in the highly volatile global economy. (English) [ABSTRACT FROM AUTHOR]