To keep from running out of international reserves under the Bretton Woods system,a country had to implement ________ monetary policy to ________ its currency.

Question

Quizplus · Accepted Answer

Under the Bretton Woods system, if a country was running out of international reserves, it needed to implement contractionary monetary policy. This policy would reduce the money supply, increase interest rates, and as a result, strengthen the country's currency by making it more attractive to foreign investors.

To Keep from Running Out of International Reserves Under the Bretton