RISE AND FALL OF BRETTON WOODS

Kristijan Gavranić and Dejan Milеtić

Economy & Business Journal, 2015, vol. 9, issue 1, 343-352

Abstract: The aim of this research is to reveal the causes that brought to the collapse of The Bretton Woods system based on the convertibility of gold to the US dollar, fixed but adjustable exchange rates, and the election of one national currency as a world currency. Based on analysis of the ratio between gold reserves and currencies, it can be concluded that due to the sudden increase in demand for commodities, and gold as a means of payment, there is a deviation from the golden rule and the attachment of currency to gold, in order to protect their own gold reserves. In the case of Bretton Woods agreement, unwillingness of the United States to, based on similar circumstances, devalue US dollar, and the desire to protect their own gold reserves, leading to collapse of The Bretton Woods system.

Keywords: gold; gold standard; currency; exchange rate; devaluation; bretton woods system; international monetary fund (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2015
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.scientific-publications.net/get/1000012/1440159381564567.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isp:journl:v:9:y:2015:i:1:p:343-352

Access Statistics for this article

More articles in Economy & Business Journal from International Scientific Publications, Bulgaria
Bibliographic data for series maintained by Svetoslav Ivanov ().