SDRs were first introduced as a means of strengthening the Bretton Woods system. If the Bretton Woods system had not collapsed soon after the introduction of SDRs, how (if at all) could SDRs have potentially contributed to alleviating the liquidity problem? The confidence problem? The adjustment problem? Why do you suppose that, since their introduction, SDRs have remained such a small fraction of international reserves? Explain.

Question

Quizplus · Accepted Answer

The Answer of SDRs were first introduced as a means of strengthening the Bretton Woods system. If the Bretton Woods system had not collapsed soon after the introduction of SDRs, how (if at all) could SDRs have potentially contributed to alleviating the liquidity problem? The confidence problem? The adjustment problem? Why do you suppose that, since their introduction, SDRs have remained such a small fraction of international reserves? Explain.

SDRs Were First Introduced as a Means of Strengthening the Bretton