SOSC 1910 Lecture Notes - Lecture 10: Nationstates, United States Dollar, Transfer Pricing
25 Nov 2015
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Lecture # 10 how does the third world feature in the global. Planners at bretton woods all favored a liberal system, one that relied primarily on the market with the minimum of barriers to the flow of private trade and capital with the dominant influence of a small number of nation-states. The liberal economic system required an accepted vehicle for investment, trade, and payments. Unlike national economies, however, the international economy lacks a central government that can issue currency and manage its use. In the past this problem had been solved through the gold standard, but the architects of bretton. Woods did not consider this option feasible for the postwar political economy. Instead, they set up a system of fixed exchange rates managed by a series of newly created international institutions using the u. s. dollar (which was a gold standard currency for central banks) as a reserve currency.
