Describe the Bretton Woods system. Why did the United States leave the Bretton Woods system and adopt floating exchange rates to determine currency values?
What will be an ideal response?
The United States supported Liberal International Economic Order (LIEO), the set of
regimes created after World War II, designed to promote monetary stability and reduce
barriers to the free flow of trade and capital. Embedded liberalismwas the dominant
economic approach during the Bretton Woods system, which combined open
international markets with domestic state intervention to attain such goals as full
employment and social welfare. Fixed exchange rate, a system in which a government
sets the value of its currency in relation to another country's currency at a fixed rate of
exchange and does not allow it to fluctuate in the global money market, brought stability
to global economic system.
You might also like to view...
Weaver Bird is a textile wholesaler operating in Texas. It earns a profit of $500,000. It pays 70 percent of its total revenue as tax. This best exemplifies which type of tax?
a. a franchise tax b. a sin tax c. a sales tax d. a margin tax
________ jurisdiction refers to the Supreme Court's power to review prior decisions handed down by state and lower federal courts
A) Original B) Trial C) Appellate D) Grand jury E) National jurisdiction
The state spends most of its annual budget on ______.
A. education and health and human services B. prisons and general government C. business, transportation, and housing D. interest on the debt
What is one of the major greenhouse gases the global community is trying to reduce?
a. helium b. oxygen c. argon d. carbon dioxide