Question

From the Unholy/Impossible Trinity menu, what did the governments meeting at Bretton Woods in 1944 choose and why? What institutions were then constructed to support this choice (your answer should clearly link specific institutions to specific choices on the Unholy Trinity menu)? PLEASE HELP!

Answer 1

From the Unholy/Impossible Trinity menu, the governments meeting at Bretton Woods in 1944 choose Independent monetary policy.

• Independent monetary policy: In the event that a nation picks fixed trade rates and autonomous money related arrangement it can't have a free progression of capital. Once more, in this case, fixed trade rates and the free progression of capital are fundamentally unrelated.
• Reason for choosing independent monetary policy: Following World War II, the well off settled on Independent monetary policy, under the Bretton Woods Agreement, which pegged monetary forms to the U.S. dollar however enabled nations to set their own loan fees. Cross-fringe capital streams were little to the point that this framework held for two or three decades—the exemption being Mundell's local Canada, where he increased unique knowledge into the strains innate in the Bretton Woods framework.

The Bretton Woods Agreement also created two important organizations—the International Monetary Fund (IMF) and the World Bank .

Hence, IMF and Wold Bank were then constructed to support this choice.

The Bretton Woods System fallen during the 1970s yet made an enduring effect on worldwide cash trade and exchange through its advancement of the IMF and World Bank..