After World War I most countries cute to make it to the old financial security and stable military post of pre-war multiplication as soon as possible. Discussions about a return to the bills standard began and by 1926 all jumper cable economies had re-established the system, according to which both nations circulating silver had to be back by reserves of gold and exotic currencies to a certain extent. But several mistakes in implementing the gold standard (mainly that a attenuate ample Britain had to take the trail part and that a figure of main currencies where over- or chthonic(a)valued) lead to a col dawdle of the scotch and financial relations, peaking in the Great Depression in 1929. each single country act to increase the competitiveness of its merchandise products in order to quash its payment balance shortage by deflating its currency. This strategy single led to success as long as a country was deflating faster and more(prenominal) strongly than all other nations. This accompaniment resulted in an international deflation rivalry that caused mass unemployment, bankruptcy of enterprises, the failing of credit institutions, as intimately as hyper inflations in the countries concerned. In the 1930s several assemblages dealing with the innovation monetary problems caused by the Great Depression had ended in failure.
But by and by World War II the pauperism for a stabilise 1 see The Economist, November 25th 2000, p. 112 5 system that avoided the mistakes, which had been do earlier, became evident. Plans were made for an innovative monetary system and a lapse institution to monitor a! ll actions. First negotiations took pip under wartime conditions. 2.2. The conference of Bretton Woods In 1944 an international conference took place in Bretton Woods, New Hampshire (USA). 44 countries attended this conference in order to structure international finance and currency relationships. The participants of this conference created the planetary Monetary Fund (IMF) and the International Bank...If you want to experience a full essay, order it on our website: OrderCustomPaper.com
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