Once upon a time, the US Dollar was considered as valuable as gold. Research the Bretton Woods agreement. Discuss its pros and cons, and attempt to justify why it was a good idea to end the agreement in 1973.
The Bretton Woods agreement created new institutions and systems, including the International Monetary Fund and the International Bank for Reconstruction and Development, which furthered the push for growth of world trade and financed the redevelopment of Europe following World War II.
The agreement led to manipulation of currencies that shape foreign trade. Also, if short-run dollar liabilities of the US continued to increase in relation to its holdings of gold, then there would be an ...
This solution discusses the pros and cons of the Bretton Woods agreement and why it was a good idea to end the agreement in 1972. APA references are inclded.