International monetary system during the post-world war, International Economics

Assignment Help:

Q. How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under the Bretton Woods agreement (1946 - 1973)?

Answer: In July 1944 legislature of 44 countries met in Bretton Woods, New Hampshire, and signed the Articles of Agreement of the International Monetary Fund (IMF) and drafted and of the World Bank. The agreement predictable fixed exchange rates against the U.S. dollar and a consistent dollar price of gold - $35 an ounce. The dollar of the United States turns into the postwar world's key currency because of a few factors:

1. The untimely convertibility of the U.S. dollar in 1945.

2. The extraordinary position of the dollar under the Bretton Woods system.

3. The strength of the American economy comparative to the devastated economies of Europe and Japan.

4. Central banks obviously found it advantageous to hold their international reserves in the form of interest-bearing dollar assets.

The Marshall Plan an agenda of dollar grants from the United States to European countries was initiated in 1948. The majority countries in Europe didn't restore convertibility until the end of 1958 with Japan following in 1964.


Related Discussions:- International monetary system during the post-world war

Why governments sometimes chose to devalue their currencies, Q. What are th...

Q. What are the three main reasons why governments sometimes chose to devalue their currencies? Answer: 1. Permit the government to fight domestic unemployment despite the

Documentary collection used in international trade, Question: Tire Co L...

Question: Tire Co Ltd, a Mauritian company, is engaged in the import and distribution of tyres from TZ Co Ltd established in Mozambique. Tire Co Ltd trades since 10 years under

What are the main functions of money, Q. What are the main function...

Q. What are the main functions of money? Answer: Money serves generally three important functions that are a unit of account, a medium of exchange and a store of value.

Global economics, How have global economic institutions(e.g. IMF,WB, and WT...

How have global economic institutions(e.g. IMF,WB, and WTO) been influenced by American values? Why have developing countries found it so difficult to adopt the neo-liberal econom

Member of the wto, Q. It has been claimed that the Chinese burst of modern...

Q. It has been claimed that the Chinese burst of modernization which has been propelling its manufactured exports throughout the world at an unprecedented rate, is made possible b

INTERNATIONAL TREAD, WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

Foreign trade, What are the two main base of foreign trade ?

What are the two main base of foreign trade ?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd