WASHINGTON, Sept. 12 Kyodo

The challenge with the Gold Standard is that it triggered bouncing periods of recession and economy booms. A country that was doing well economically would import goods from overseas until their gold reserves were too low to properly sustain the economy. inflation rose to a high level that ensured a recession. Eventually, the recession would cause the cost of that country’s goods to sink so low that its goods were very attractive to other countries. Those countries who were doing well economically would begin to import goods and the cycle would continue from country to country. An acknowledgement called the Bretton Woods Agreement, the compact that set the price of the US Dollar and set all other participating countries currencies against it, ended after World War 2 when international trade became so widespread as to render the agreement useless.

What made countries move from the Gold Standard to the current compact?

Are there any other factors that keep individuals from being an investor in the Forex Market?

Here are some common questions relating to Forex Trading:

posted by Administrator at 5:45 pm & filed under Dollars |