This dollar-based fixed exchange rate system gave rise to a long period of economic recovery and growing openness of both international trade and capital flows in and out of more and more countries.
A) The Gold Standard, 1860-1914
B) The Interwar Years , 1914-1945
C) The Bretton Woods Era, 1945-1971
D) The Floating Era, 1971-1997

Question

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The dollar-based fixed exchange rate system is known as the Bretton Woods system, which was in place from 1945 to 1971. It was established after World War II at the Bretton Woods Conference in New Hampshire, where countries agreed to peg their currencies to the US dollar, which was backed by gold at a fixed rate. This system promoted international trade and investment, as countries had greater confidence in each other's currencies, and it also allowed for more stable exchange rates. However, it ultimately fell apart due to financial imbalances and inflationary pressures, leading to the Floating Era that followed.

This Dollar-Based Fixed Exchange Rate System Gave Rise to a Long