The golden period(1870 to 1914, classical gold standard) in the history of IMS, Created on the basis of previous IMS with some flexibility and some measure of control over international liquidity. But, because of its exchange rate rigidity and reign of USA the problem of inflation and unemployment arised in major industrial economy. during that period the Smithsonian agreement came with the evaluation of dollar but, it did not inquired about the huge imbalance in the U.S. foreign trade and did not disdain on partiality of the convertibility of gold into dollar. Now new system came into existence after the breakdown of bretton wood system but, there are some type of shortcoming, we need to make the system in such a way of which we can maintain the equilibrium and all nation can enjoy same rights
The golden period(1870 to 1914, classical gold standard) in the history of IMS, Created on the basis of previous IMS with some flexibility and some measure of control over international liquidity. But, because of its exchange rate rigidity and reign of USA the problem of inflation and unemployment arised in major industrial economy. during that period the Smithsonian agreement came with the evaluation of dollar but, it did not inquired about the huge imbalance in the U.S. foreign trade and did not disdain on partiality of the convertibility of gold into dollar. Now new system came into existence after the breakdown of bretton wood system but, there are some type of shortcoming, we need to make the system in such a way of which we can maintain the equilibrium and all nation can enjoy same rights
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