Bretton Woods Case Study

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Conference of The Bretton Woods Conference, officially called the United Nations Monetary and Financial was a gathering of 730 delegates from all 44 allies of the Washington Hill Hotel in Bretton Woods, New Hampshire, to manage the international currency and the financial order after the end of the Second World War. The early days of the Bretton Woods, while the United States urged the immediate implementation of the provisions, poor economic conditions in most parts of the post-war world made it difficult to compensate for the balance of payments problems under a fixed exchange rate system without some current account-exchange controls and external sources of finance. The meeting was held from July 1 to 2, 1944. After the agreement was signed,…show more content…
Fiat money is very good, the first is portability, Notes are very easy to carry. Upgradeable It is very easy to pay in a different placement device, which is preferable to metal money. For the Bank advantages, banks have a lot of advantages. They can keep their cash reserves in this form of debt, since notes are in full legal tender. The Government's financial advantage over banknotes is undeniably enormous, especially in countries such as war and other emergencies. Modern wars cannot be sued only by taxes or loans. All governments have to resort to presses. In recent year there has been a great deal of inflation in India. We must remember that, in this way, my Government has been able to spend millions of rupees for various ambitious development programs. Therefore, in the extreme demand, the paper money problem is very useful to the government. The second is the value of small quantities, there is no money can be compared with our modern notes, because it is the minimum weight and value is also high. The third benefit is the economic cost, which is very fast, cheap and economical compared to metal money. Then is the precious metal savings, the use of paper money to save a lot of precious metals, such as gold and silver. The wear of these metals is also saved. There is also note that it is easy to count, and paper money can be counted more easily than coins. Metal money counting is a very difficult and not…show more content…
Fire flammable; if your paper money touch water it can easily disappear; it can also be eaten by white ants. Third, a serious drawback in banknotes is that it can be easily issued. When the government subsidizes, there is always the risk of over-issuance. Temptation too much, cannot resist. Once this process is employed, it collects momentum and leads to further noted that the print is dropped until all the value of the paper money loses. This situation has recently occurred in different countries: in Russia (1917), Germany (1919), China (1944) and so on. Excessive issue of paper money, in other words, "inflation", brought many train evil. One of the disadvantage is The legal tender also has less stability. Legal currency Compared with metal currencies, the legal value of the stability of the currency is low. In some cases, it has expired, people relax their confidence in the value of the legal currency, and they keep their gold and silver deposits. There is no doubt that the legal currency also has some shortcomings, but its advantages

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