Which of the following led to the eventual demise of the fixed currency exchange rate regime worked out at Bretton Woods?
A) widely divergent national monetary and fiscal policies among member nations
B) differential rates of inflation across member nations
C) several unexpected economic shocks to member nations
D) all of the above

Question

Quizplus · Accepted Answer

The eventual demise of the fixed currency exchange rate regime worked out at Bretton Woods was caused by a combination of widely divergent national monetary and fiscal policies among member nations, differential rates of inflation across member nations, as well as several unexpected economic shocks to member nations. These factors led to the breakdown of the system and ultimately its abandonment in 1971.

Which of the Following Led to the Eventual Demise of the Fixed