Postwar worlds key currency, International Economics

Assignment Help:

Q. Explain why the dollar of the United States became the postwar world's key currency.

Answer:

1. The untimely convertibility of the U.S dollar in 1945.

2. The special position of the dollar in the Bretton Woods system.

3. The potency of the American economy relative to the devastated economies of Europe and Japan.

4. Central banks logically found it advantageous to hold their international reserves in the form of interest-bearing dollar assets.


Related Discussions:- Postwar worlds key currency

Study the effect of an increase in income, Q. Using a figure illustrate the...

Q. Using a figure illustrate the simultaneous equilibrium of the foreign exchange and domestic money markets when the exchange rate is fixed at E0 and is expected to remain fixed a

Effects of the reunification of eastern and western germany, Q. Discuss the...

Q. Discuss the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries. Answer: Germany rumbles high interest

Explain mutual exchange rate to float, Q. Explain why it may make sense for...

Q. Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float? Answer: Even though these regions trade amid each other

Fixed-exchange rate area, Q. "The costs and benefits for a country from jo...

Q. "The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners.

Does foreign aid lead to economic growth?, Question 1: The main challen...

Question 1: The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government interventi

Economic investigations report, The latest economic investigations report t...

The latest economic investigations report that the recent earthquake, tsunami and nuclear disaster have led to an economic recession in Japan. This recession may reduce the demand

Why study fixed exchange rates, Q. Why Study Fixed Exchange Rates? ...

Q. Why Study Fixed Exchange Rates? Answer: Four main reasons: • Managed Floating - Current monetary system is hybrid of floating rate and pure fixed systems fix

Benefits enjoyed by indian companies, "1. Describe the important benefits e...

"1. Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy. 2. "Leontiff paradox is proved in the Indian

Impact of the project on the external economic environment, Impact of the P...

Impact of the Project on the External Economic Environment International Medical Center will significantly affect the external economic environment in different aspects: • Th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd