The Bretton Woods Regime Has Not Collapsed - Term Paper Example

While the developing countries may owe the rich countries some debts out of their voluntary actions of borrowing from the rich countries to finance some of their internal affairs, there are some causes of the debt crisis in the third world countries, which has been caused by the unjustifiable transfer of the colonizing states' debts to the newly independent nations, which served to give such countries a lame start, considering that they started running their affairs with a burden o… f debt already on their shoulders (Bairoch, 112)....

the bretton woods Agreement is a fully negotiated monetary order intended to govern currency relations among sovereign states.... Each of the countries which signed their allegiance to the bretton woods indicates its recognition of four important factors.... On the other hand, architects of the bretton woods are also reluctant in adopting a permanently fixed exchange rate like the 19th-century gold standard.... It can be recalled that the Great Depression in the 1930s has become a grim reminder of how floating exchange rates discourages trade and investment while increasing the risk of destabilization and competitive depreciation....

The World Bank propagated the new economy as a viable means of bridging the gap between the poor and rich countries in terms of resource, technology, infrastructure, knowledge and capital disparities.... hellip; This was due to differences in the willingness to undertake risks, availability of ready credit and trained labour force....

In turn, the government has to choose between following the international policy at the cost of the economy and of the local market, or be subject to the sanctions imposed to countries when these are unable to comply with international standards.... Deep globalization or “hyperglobalization” entails the restructuring of national policies on trade and commerce, making it easy for foreign markets to enter locally and compete directly with already-existing domestic markets (Rodrik 190)....

Ever since the collapse of the bretton woods regime (soft peg) in the 1970's, economists have never concluded the debate whether fixed or floating exchange rates are preferable.... Ever since the collapse of the bretton woods regime (soft peg) in the 1970's, economists have never concluded the debate whether fixed or floating exchange rates are preferable.... fixed exchange rate regime as well as floating exchange rate regime....

hellip; The author states that economically, Bangladesh has been ranked as one of the poorest countries in the world and has based its economy on the export of textile products.... Some of the main setbacks to economic development include power disruption, poor infrastructure since the government has underinvested as compared to China....

The requirement of the gold standard regime was that each country adjusts its household money supply in straight relation to the amount of gold it held and the domestic currencies should be defined in terms of a specific weight of gold.... The author examines the international monetary system which is defined as the political, institutional, and economic environment....

hellip; Yemen is an example of an underdeveloped state that has crumbling governance and political structure, acute or inadequate social amenities, broken and disorganized military and dissent that has perpetually threatened to crumble the nation.... The paper "Yemen and its Development After Removal of President Ali Saleh" demonstrates Yemen is already on the path to political reforms....