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

U.s. government offers subsidy, Q. Suppose the U.S. government (but not Eu...

Q. Suppose the U.S. government (but not Europe) offers a $10 million subsidy? Answer: In this case Airbus would make a decision not to enter the market since it knows Boeing

Strategies of globalization and regionalization, Describe the strategies of...

Describe the strategies of globalization and regionalization and explain when each strategy can be used effectively.  Give examples of successful companies that have followed each

Effects of a temporary increase in the european money supply, Q. Using a fi...

Q. Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a temporary increase in the European money supply on the dollar/euro

Iscuss the wage fund theory of wage determination, Economic Theory 1. ...

Economic Theory 1. Explain the procedure of factor price determination under imperfect competition. 2. Discuss the Wage Fund Theory of Wage Determination. 3. Explain the

International trade, International business involves the management of inte...

International business involves the management of international risk. To minimize risks commercial parties utilize independent guarantees and standby letters of credit. (a)  Dis

Why relative ppp is useful when comparing countries, Explain why Relative P...

Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer:  For instance If the U.S price level increase by

Delay line, what is delay line in cro?

what is delay line in cro?

Economical development, You can work on this on your own, or with one partn...

You can work on this on your own, or with one partner.  If there are more than two names on the submitted work, then I will give a maximum grade of 60 to each person listed on the

International Economics, Brifly explaine the alternative explanation to the...

Brifly explaine the alternative explanation to the theory of international 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