SOME THOUGHTS ON INTERNATIONAL MONETARY POLICY CORDINATION

1. The initial idea of the agreement was to convert paper money into gold at a
nominal rate. What do you think this process creates in a country's economy?
(Hint: they exchange money of their reserves for a commodity)

I think it makes economy complicated because how could you put a fix price or
rate for a piece of gold?

2. What made European countries to stop this conversion for gold? (Explain how
it ultimately led to the US leaving the agreement)

Making a common currency domestically. The Euro and the fiat money.

3. Explain in your own words the objective of the Bretton Woods agreement. 

To set up a new system of rules, regulations, and procedures for the major

economies of the world to ensure their economic stability. 

4. Explain briefly what led to the failure of Bretton Woods. 

The uncooperative behavior of the European countries deviated from the original design of
the system, and inflation.

5. What are the two proposals to attain accountability when implementing a new
international policy rule?

Having a set of rules and having a free market

6. Why such a common currency like the "Euro" is almost impossible to

accomplish? 

Each country has different rules, economy, etc, so its hard to set one common
currency.

7. Explain which countries tend to "suffer" the most (spillovers) after a Fed
movement?
Countries with large fiscal deficits, heavy external debt, and high inflation likely
will have more trouble contending with spillovers and thus complain about a U.S.
policy decision. Like us 😊

8. What's the final recommendation made by the author? 

Rules are required, they are very important.