Under the Bretton Woods system,when a nonreserve-currency country was running a balance of payments deficit,

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Under the Bretton Woods system, when a nonreserve-currency country experienced a balance of payments deficit, it would lose international reserves as it spent more on foreign trade than it earned. To correct this imbalance, policymakers often had to implement contractionary monetary policy to reduce spending and imports, thereby helping to restore balance.

Under the Bretton Woods System,when a Nonreserve-Currency Country Was Running