oussama94
05-28-2017, 19:34
While U.S. President Nixon was confident that the end of the Bretton
Woods system would bring about better times for the international economy,
he was not a believer that the free market could dictate a currency’s
true valuation in a fair and catastrophe-free manner. Nixon, as well as most
economists, reasoned that an entirely unstructured foreign exchange market
would result in competing devaluations, which in turn would lead to the
breakdown of international trade and investment. The end result, Nixon
and his board of economic advisers reasoned, would be global depression
Woods system would bring about better times for the international economy,
he was not a believer that the free market could dictate a currency’s
true valuation in a fair and catastrophe-free manner. Nixon, as well as most
economists, reasoned that an entirely unstructured foreign exchange market
would result in competing devaluations, which in turn would lead to the
breakdown of international trade and investment. The end result, Nixon
and his board of economic advisers reasoned, would be global depression