Governments in advanced industrial societies have consistently chosen domestic economic autonomy over exchange-rate stability only since the
A) 1860s.
B) 1880s.
C) 1900s.
D) 1920s.
E) 1940s.

Question

Quizplus · Accepted Answer

Governments in advanced industrial societies have consistently chosen domestic economic autonomy over exchange-rate stability only since the 1920s. Prior to that, the gold standard and other fixed exchange rate systems were prevalent in the international economy, limiting countries' ability to pursue independent monetary and fiscal policies. It was only after the collapse of the gold standard in the wake of World War I that countries began to experiment with more flexible exchange rate arrangements and greater domestic policy autonomy.

Governments in Advanced Industrial Societies Have Consistently Chosen Domestic Economic