The defects of Jamaica’s system are as follows :(1) international financial instability. Under the pattern of diversified international reserves, the issuing country still enjoys various benefits such as “seigniorage”. At the same time, under the pattern of diversified international reserves, there is no unified and stable standard, which itself may cause international financial instability.
(2) The fluctuations of international trade and investment activities are inhibited, and the exchange rate system is extremely unstable.
One of its negative effects is increased, thus inhibiting international trade and investment activities to a certain extent. For developing countries, this negative effect is particularly prominent.
(3) International balance of payments imbalance The international balance of payments adjustment mechanism is not perfect, various existing channels have their own limitations, the Jamaican system has not eliminated the global balance of payments imbalance.
