Differences between bretton woods system and gold standard

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Under a fixed exchange rate regime, first show and carefully discuss the effects of a (temporary) fiscal expansion (i.e. higher G or lower T) in the short-run using the DD-AA model. Secondly, using the same figure show the equilibrium under a flexible exchange rate. Discuss the difference in the two regimes including their effects on interest rate, exchange rate, current account, domestic output, and official international reserves of the Central Bank.

What are the main differences between the Bretton Woods system and the Gold standard? List and briefly explain four of them.

Reference no: EM131193792

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