A weakness of the Bretton Woods system was that the ________ had no way to force surplus countries to either revalue their exchange rates upwards or pursue more expansionary policies.

Question

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The IMF, which was created as part of the Bretton Woods system, was designed to help manage global monetary affairs, but it did not have sufficient power to force surplus countries to adjust their exchange rates or pursue more expansionary policies. Consequently, countries with chronic trade surpluses, like Germany and Japan, were able to maintain their competitive advantages and accumulate large amounts of foreign exchange reserves, which eventually contributed to the collapse of the Bretton Woods system in the early 1970s.

A Weakness of the Bretton Woods System Was That the ________