The fundamental cause for the collapse of the Bretton Woods system was (A) The liquidity problem (B) The adjustment problem (C) The confidence problem (D) All of these
Points to Remember: The Bretton Woods system was a post-World War II international monetary system. The system’s core was the US dollar’s convertibility to gold. The system faced several challenges leading to its eventual collapse. The collapse involved liquidity, adjustment, and confidence issues. Introduction: The Bretton Woods system, established in 1944, aimed to create a … Read more The fundamental cause for the collapse of the Bretton Woods system was (A) The liquidity problem (B) The adjustment problem (C) The confidence problem (D) All of these