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The new gold standard system
The new gold standard system
The country concerned had to intervene if the market value of its currency goes beyond the range. Under special circumstances, a country was allowed to adjust the par value of its currency. Thus the Bretton Woods system is said to be using an adjustable peg. The new system was also called by some people the “New Gold Standard System.” This relative stability in exchange rates facilitated international business till the beginning of 1970s.
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