Which Of The Following Is Not True Regarding The Bretton Woods Agreement
Discontent with the political impact of the dollar system was exacerbated by the détente between the United States and the Soviet Union. The military threat of the Soviet Union had been an important force in the consolidation of the U.S.-led monetary system. The political and security umbrella of the United States helped make American economic dominance tasty for Europe and Japan, which was economically exhausted by the war. As gross domestic production increased in European countries, trade increased. As security tensions eased, transatlantic dependence on defence eased and led to latent economic tensions. All attempts to maintain the link failed in November 1968, and a new political agenda attempted to transform the Bretton Woods system into an enforcement mechanism to raise the golden link set either by Fiat`s policy or by a restriction on the honour of foreign accounts. The collapse of the gold reserve and the refusal of pool members to negotiate gold with private companies – March 18, 1968, the U.S. Congress reversed the request for 25% support for the dollar`s gold – and the U.S. commitment to suspend gold sales to governments operating in private markets, which led to the expansion of private gold markets.  in which the price of gold rose significantly more than the official price of the dollar.   The gold reserves of the United States remained depleted due to the actions of certain nations, particularly France, which continued to build their own gold reserves. As chief international economist at the U.S.
Treasury, Harry Dexter White designed the U.S. Cash Access Project in 1942/44, which rivaled Keynes`s plan for the British Treasury. Overall, White`s system tended to favour incentives to create price stability in the world`s economies, while Keynes wanted a system that promoted economic growth. The “collective agreement was a huge international undertaking,” which took two years before the conference to prepare for it. It consisted of numerous bilateral and multilateral meetings to find a common basis for determining the policies that would be behind the Bretton Woods system. In March 2010, Greek Prime Minister Papandreou wrote in a statement in the International Herald Tribune: “Democratic governments around the world must create a new global financial architecture, as bold as Bretton Woods, as bold as the creation of the European Community and the European Monetary Union. And we need that quickly. In interviews that coincide with his meeting with President Obama, he suggested that at the upcoming G20 meetings in June and November 2010, Obama would raise the issue of new regulations in international financial markets.