--%>

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 : What do you mean by the term Entry What

    What do you mean by the term Entry in Accountancy?

  • Q : Psychological Health Psychological

    Psychological Health: The employees have noted in their survey feedbacks that their peer relations are based on trust and are healthy. But the nature of work is such that they see lot of suffering. Their interaction with clients at times is not health

  • Q : Accountant & Financial In Business

    Questions 1. Identify the services or programs to be included in the cost and profitability analysis. 2. Examine the costs listed in Table 2. a. Identify the direct costs associated with each service or program. b. Which costs would be organization

  • Q : Define the term Equipment Define the

    Define the term Equipment in Accountancy? Why they are used?

  • Q : Goal programming model Write an article

    Write an article on Goal programming model to address the selection of the best group of quality control instruments in designing a quality control system for service organizations.

  • Q : Challenges of long distance relationship

    My friend is in a new long distance relationship. My friend wants to ask to identify the challenges or difficulties of long-distance romantic relationships and explain communication strategies for coping with these challenges. The res

  • Q : Article on Supplier selection Write an

    Write an article why Supplier selection has been a critical decision to be made for any company?

  • Q : Liabilities and Assets in Balance Sheet

    Why Liabilities are always on the left side and Assets on right side in the Balance Sheet?

  • Q : Eliminating exposure of the currency

    Banks find it essential in order to accommodate their client’s requirements for buying or selling foreign exchange forward, in several instances for the hedging purposes.  How the bank can eliminate the exposure of the currency it has made for itself by acc

  • Q : International bonds Explain why most of

    Explain why most of the international bonds have high Moody’s or Standard & Poor’s credit ratings?