The stability of the international monetary system /

This work is an attempt to demystify international monetary relations (IMR) for the noneconomist. Scammell's approach, best presented in International Economic System Since 1945 (2nd ed. 1983) is politico-historical. In the nine chapters of this book the author guides the reader through some theoretical and institutional intricacies of IMR. Although many of the theoretical discussions can be understood by noneconomists, some previous training in international economics appears to be the prerequisite for understanding certain analyses. The book clarifies why an international institution (such as the International Monetary Fund-IMF) cannot regulate IMR as central banks control their own national monetary conditions. Conflict of interest among sovereign states is the core of the problem of international monetary control. Is the collapse of the international monetary system a possibility? Scammell's answer is a definite no. This is an overly optimistic prognosis, especially by a historian of IMR who is well aware of the collapse of the gold standard and the Bretton Woods system. The brief history of IMR (Chapter 3) is a fine introduction to the subject. The discussion of monetarism (Chapter 6) and the treatment of capital flows (Chapter 7) are both excellent. Recommended for advanced undergraduate collections.-S. Behdad, Denison University