POLD89H3 Study Guide - Final Guide: Stanley Hoffmann, Execution Unit, Corporatism
3 Oct 2013
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Document Summary
Nations attempted to revive the gold standard following world war i, but failed representatives of most of the world"s leading nations met at bretton woods, new hampshire, in 1944 to create a new international monetary system. America was the leader in holding most of the world s gods, the leaders decided to tie the world currencies to the dollar, ( per ounce) This gave the central banks of countries other than the us the task of mauntaing fixed exchange rates with the dollar and their currency. If the currency was higher than the dollar, banks of other countries would sell domestic currency and buy . Bretton woods system lasted until 1971 and collapsed due to high inflation and growing trade deficit of the . After 1971, the was allowed to float (fluctuate against other currencies) Side note: countries with high trade surpluses would sell their currencies in order to prevent appreciating (thereby hurting export)
