The characteristics of Jamaica’s system are as follows :(1) gold decolorization, that is, the complete decoupling of gold from currency, abolishing the obligation between countries to use gold to pay off creditor’s rights and debts, reducing the monetary role of gold, reducing the status of gold in international reserves, and facilitating the establishment of a diversified international reserve system.
(2) Diversified institutional arrangements The basic goal of international economic cooperation is to maintain economic stability rather than exchange rate stability.
The Jamaican system allows for diversification of exchange rate regime arrangements and attempts to gradually replace regimes with more flexible floating exchange rate regimes worldwide.
The diversified exchange rate arrangements are divided into the following three types: “hard pegs”, such as currency board system and monetary union system;
“Soft PEgs”, including the traditional fixed peg system, crawling peg system, floating system and floating system in crawling band;
“The floatinggroup” includes both a fully floating exchange rate system and a variety of floating exchange rate systems with varying degrees of control.
(3) Diversified international reserve system dominated by the Jamaican government. In the Jamaican system, a country can choose not only the U.S. dollar, but also international currencies such as gold reserves, the reserve positions of the International Fund (IMF), and SDRs. Despite this, the U.S. dollar is still the main component of each country.
The fundamental contradictions of the original monetary system have not been fundamentally solved.
(4) Diversification of international balance of payments adjustment mechanisms IMF allows countries with international balance of payments imbalance to make discretionary choices through various means of international balance of payments adjustment such as exchange rate mechanism, mechanism and financial facility mechanism.
