What are the lessons learned from the global economic collapse of the 1930s?
A)The major economies could not maintain their fixed exchange rate regime.
B)The resultant flexible regime was highly unstable.
C)There were speculative attacks on currencies and currency devaluations.
D)All of these are true.

Question

Quizplus · Accepted Answer

The global economic collapse of the 1930s, particularly the Great Depression, taught several lessons, including the difficulty of maintaining fixed exchange rates during severe economic downturns, the instability of the flexible exchange rate regime that followed, and the occurrence of speculative attacks on currencies leading to devaluations. These events highlighted the interconnectedness of global economies and the need for coordinated economic policies.

What Are the Lessons Learned from the Global Economic Collapse