Critically evaluate the rules and institutions of the Bretton Woods system. What lessons do these features provide for Economic and Monetary Union (EMU) policymakers?
• This draws together several aspects of the second major section of the course (exchange rate regimes and international monetary systems) to require:
- A critical analysis regarding the effectiveness of the key design features (i.e. rules and institutions) of the Bretton Woods system, rather than simply describing them which is inadequate for Level 3
- From the above, the answer should develop these ideas to discuss the implications of the lessons in relation to those created for EMU
-This should be in the form the relative success/failure of the Bretton Woods system rules and institutions and should involve a comparative analysis of the respective rules and institutions between the Bretton Woods system and EMU
• The key to a good answer is:
o To identify the key design features (i.e. rules and institutions) of the Bretton Woods system, but not to overly describe them, but evaluate their effectiveness from their relative success / failure and the lessons that can be learnt
o To identify the key design features (i.e. rules and institutions) of EMU and critically evaluate them in relation to those from the Bretton Woods system
o To discuss what lessons have / have not be learnt by the designers of EMU from the previous experience of the Bretton Woods system
• How to start to address the question:
1. Briefly summarise the key design features (i.e. rules and institutions) of the Bretton Woods system
2. Evaluate their effectiveness from their relative success / failure and the lessons that can be learnt
3. Briefly summarise the key design features (i.e. rules and institutions) of EMU
4. Discuss the what lessons have / have not be learnt by the designers of EMU from the previous experience of the Bretton Woods system
General guidance:
• Focus upon the question! Read the question and guidance notes carefully to ensure you only write the actual question at the top of your answer. Do not make-up your own version of the question otherwise there is the danger that you will drift-off the point of the set question.
• Use a clearly defined structure. Create a plan for your answer and check this against the question to guarantee that you are going to address all the required aspects. Ensure that the material is divided into specific sections to create a linear narrative. Think about the allocation of the 2,000 words across these different aspects to maintain a balance in your essay.
• Critical analysis. This is a Level 3 module and therefore it is essential to develop a critical evaluation within your answer. This can be in terms of its own inherent problems, in relation to alternative approaches/schools of thought, or concerning suggested policy options. If it is difficult to work this into the main body of the answer, then the conclusion should contain this discussion.
• Introduce the model(s) / international monetary systems that the question relates to. For most questions you will need to acknowledge the relevant model(s) / international monetary systems; however, usually it will not be necessary to explain the model itself, since the question will usually refer to its evaluation / comparison with other models/school of thought.
• Sources / bibliography. You should seek to expand your reading beyond the lecture material and the various textbooks list at the end of the lecture notes/module handbook to demonstrate a breadth of sources. This is again essential given that this is a Level 3 module. However, ensure you only use academically credible sources e.g. research-led books, journal articles. Ensure you cite these properly with the full publication details (e.g. journal name, volume/part numbers and pages) don't just put the URL.