--%>

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 : Highlights of Lobbying Define the term

    Define the term Lobbying in the the act of attempting to persuade affiliates of a legislative body to cast their vote in favor of the lobbyist.

  • Q : Lessons from experiences of Novo State

    State some of the factors which motivated Novo Industries to seek the U.S. listing of its stock. Explain about the lessons which may be derived from experiences of Novo?

  • Q : Current and capital account deficit

     Exhibit 3.3 states that in year 1991, the U.S. had current account deficit and consecutively a capital account deficit. Explain about how this may occur?

  • Q : Sharpe performance measure concept

    Explain the Sharpe performance measure concept.

  • Q : Capital budgeting analysis imperative

    State why is capital budgeting analysis so imperative for the firm?

  • Q : Need for valuing goodwill Need for

    Need for valuing goodwill: If the mutual rights of the partners modifies then the party which makes a sacrifice should be compensated. This basis of compensation is goodwill therefore we require calculating goodwill. Mutual rights change beneath follo

  • Q : Problem on National income Providing

    Providing reasons, describe the treatment assigned to the following which estimates national income.(i) Family members working freely on farm owned by family.(ii) The Payment of interest on borrowings through general government.

  • Q : What are equipment expenses What is

    What is equipment expense or what are equipment expenses?

  • Q : Essay-People Dependent on technology

    PEOPLE DEPENDENT ON TECHNOLOGY TOO MUCH: Science has developed tremendously in past few years and with the development of science many technologies have entered this world. Today everything is being done with the h

  • Q : Define Liabilities Liabilities mean the

    Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil