--%>

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 : Small talk Define small talk and

    Define small talk and discuss its role in developing the relationship.

  • Q : Causes of current account deficits

    United States has experienced constant current account deficits since early 1980s. List some of the major causes of the deficits? What could be the consequences of these constant U.S. current account deficits?

  • Q : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

  • Q : Spiritual Health Spiritual Health : The

    Spiritual Health: The relations with their superiors and peers are good. They work for a cause for the society and therefore they are able to draw contentment. This at times work against health to create compassion stress when employees are not able t

  • Q : Define Income Statement How to do

    How to do income statement = from the revenues we will deduct all the expenses related to that period to get the income or loss. When the revenues are more than the expenses then it is income and when the expenses are more than the revenues then it is

  • 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 : Salary outstanding account What type of

    What type of Account is Salary outstanding? What do you think, it is real or personnel or the nominal account?

  • Q : Techniques of valuation of goodwill

    Techniques of valuation of goodwill: A) Average profit technique B) Super profit technique C) Capitalization technique

  • Q : Factors for surge in the international

    List some factors which are responsible for recent surge in the international portfolio investment (IPI)?

  • Q : Causes of decreasing of Gross profit

    What are the various causes of decreasing of Gross profit margin?