The lessons learned from the global economic collapse of the 1930s included
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

All three statements are true and reflect important lessons learned from the global economic collapse of the 1930s. The fixed exchange rate regime proved unsustainable and led to speculative attacks on currencies and subsequent devaluation. The shift to a more flexible exchange rate regime was necessary but also introduced new challenges and instability.

The Lessons Learned from the Global Economic Collapse of the 1930s