Problem
1. Under the Bretton Woods system, a country with a balance-of-payments deficit is to make what changes in its domestic macroeconomic policies? Under what circumstances would these changes parallel the needs of the domestic economy? When would these policy changes conflict with those needs?
2. Why were payments-surplus countries under far less pressure to adopt the domestic macroeconomic policies called for by the adjustment process than were deficit countries under the Bretton Woods system? What effect did this situation have on the problems facing deficit countries as they tried to adjust?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.