--%>

Bretton Woods’s system programmed to eventual demis

Comment over the below proposition: “One can say that Bretton Woods’s system was programmed to the eventual demise”. 

E

Expert

Verified

Explanation to this proposition is related to Triffin paradox. Underneath gold-exchange system, reserve-currency country must run the BOP deficit in order to provide the reserves to economy of the world, however if deficits are huge and persistent, they may lead to the confidence crisis within the reserve currency itself, finally resulting the downfall of system.

   Related Questions in Financial Accounting

  • Q : A technically oriented software design

    Design: For this assignment you are to produce, one per group, a technically oriented software  design document. As the scope of the project is quite small and basically encompasses an extension to an existing

  • Q : What do you mean by the term turnover

    What do you mean by the term turnover?

  • Q : Leadership qualities required for

    Question Can one person in an organization make a difference? Write an essay on the leadership qualities required for running modern organizations <

  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

  • Q : Explain accounting equation in brief..

    what is accounting equation? explain accounting equation and explain its importance?

  • Q : Multiplicity-Creativity as process

    Define the term Multiplicity (Creativity as process) in creative industry ? And also state the different personality traits and intellectual aptitudes which might contribute to creative thinking ?

  • Q : Asset-allocation funds Mutual funds

    Mutual funds that hold both bonds and stocks. Some asset-allocation funds follow specified allocation percentages and others take advantage of current condition. Those that take advantage of current condition is higher risk, because the fund manager tries to adjust the allocations to take advanta

  • Q : Effect of shipping costs Assume that

    Assume that pound is being pegged to the gold at 6 pounds per ounce; on the other hand the franc is being pegged to the gold at 12 francs per ounce. Which, of course, states that equilibrium exchange rate must be the two francs per pound? If existing market exchange r

  • Q : International financial management

    Explain the importance in studying the international financial management?

  • Q : Factors influencing real estate market

    What are the factors which influences real estate market?