The Triffin paradox was first proposed by Professor Robert Triffin and warned of the long-term collapse of the gold-exchange system under the Bretton Woods agreement. It is widely believed that this paradox was indeed responsible for the eventual collapse of the dollar-based gold-exchange system in the early 1970s. Therefore, all of the above statements are correct.

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The Triffin Paradox

Question 28

Multiple Choice

The Triffin paradox

A) was first proposed by Professor Robert Triffin.
B) warned that the gold-exchange system of the Bretton Woods agreement was programmed to collapse in the long run.
C) was indeed responsible for the eventual collapse of the dollar-based gold-exchange system in the early 1970s.
D) all of the above are correct

Correct Answer: