The 'Smithsonian Agreement' of 1971 was a failed attempt to:
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Correct answer: Save the fixed exchange rate system by devaluing the dollar
After Nixon ended the gold window, the Smithsonian Agreement tried to reset fixed rates with a devalued dollar. It lasted only about 15 months before the system completely collapsed into floating rates.
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More Bretton Woods System questions
- The primary purpose of the Bretton Woods Conference of 1944 was to:
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