(bilateral) or more (multilateral) countries seek to regulate and coordinate their financial relations through the treaty. The objectives are generally to promote trade by facilitating the payment of international debt and to maintain a stable exchange rate in each country through the granting of credit in order to deal with temporary balance-of-payments difficulties. After the Second World War, there was a major movement towards multilateral currency agreements, the largest of which were the International Monetary Fund and the European Payments Union (1950). Community unions such as the European Community (EC) and the European Free Trade Association often require a high level of monetary cooperation, and the growing European integration that has transformed the EC into the European Union (EU) has also led to monetary cooperation strengthened by the European monetary system. In 1999, most EU Member States adopted a single currency, the euro, which replaced the currencies of 12 Member States in 2002; Other EU member states have adopted it in the meantime. The use of money dates back to the first mode of exchange and can be traced back to sedentary societies 4000 years ago. But none of these earlier uses of money meant that there were monetary savings, far fewer international monetary agreements; The monetary economies are much younger and come from parts of medieval Europe. At one point, international monetary relations developed, perhaps in the late Middle Ages and early modern times – 1400-1700. But there was no international monetary system (some rules more or less formally agreed by participants to make international payments) until a certain point after. It is only after the arrival of the nation-state and national money, as well as the strong growth of international trade and capital flows in the 19th century, that we can begin to talk about an international monetary system. It is therefore common and reasonable to think in the debate about the international monetary system of the years following the 1860s.
Through an analysis of the panel data, we study this relationship in different constellations of the international monetary system: the sterling period (1890-1935) and the dominance of the dollar (since the Second World War). We show, for both periods, that the monetary situation significantly reduces the budgetary balance. Each additional reserve dollar reduces the center`s balance from $0.7 to $1.4. These new findings show that the status of the reserve currency increases the public debt of the middle-age country. In 2010, the Fund had 31 articles. They define the IMF`s obligations to its member countries and, conversely, members` obligations to the Fund. Article I describes the Fund`s main objectives as promoting exchange rate stability and „international monetary cooperation; facilitate the expansion and balanced growth of international trade; Helping to establish a multilateral payment system; and provide resources (with appropriate guarantees) to members with balance-of-payments difficulties.“ Article II deals with membership, while Article III sets quotas.