Answer:
(i) Despite years of
stable and rapid growth, not all was well in the post-war world.
(ii) From the
1960's, the rising cost of US overseas involvement weakened its financial and
its competitive strength.
(iii) The US
dollar now no longer commanded confidence as the world's principal currency. It
could not maintain its value in relation to gold.
This ultimately led
to the collapse of fixed exchange rates and the introduction of a system of
floating exchange rates.
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