How did the international monetary system created at Bretton Woods in 1944 allow its members to reconcile their external commitments with their internal goals of full employment and price stability?
What will be an ideal response?
As the world economy evolved in the years after World War II, the meaning of "external balance" changed and conflicts between internal and external goals increasingly threatened the fixed exchange rate system. The United States, the issuer of the principal reserve currency, was a major concern, leading to proposals to reform the system.
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In the classical model, a decrease in immigration would
a. decrease labor supply, increase the real wage, and decrease output. b. increase labor supply and the real wage, and decrease output. c. increase labor demand and the real wage, and increase output. d. reduce real wages and reduce output.
Which of the following statements is true with respect to the concept of dumping in international trade?
a. Dumping is designed to sell off surplus goods, especially agricultural goods. b. Dumping leads to higher competition in the long run. c. Dumping is illegal in the United States. d. Dumping creates toxic wastes in the importing country. e. Dumping can only be practiced by a monopolist.