The Smithsonian realignment solved neither the economic imbalances nor the political conflicts that were the cause of the Bretton Woods system's weakening.

Question

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The Smithsonian realignment, which occurred in 1971 and involved devaluing the U.S. dollar and revaluing other major currencies, did not address the underlying economic and political issues that had led to the breakdown of the Bretton Woods system. These issues included the persistent U.S. balance of payments deficit, the overvaluation of the U.S. dollar, and the unwillingness of other countries to continue holding large amounts of U.S. dollars as reserves. These issues would continue to plague the international monetary system in the years that followed.

The Smithsonian Realignment Solved Neither the Economic Imbalances nor the Political