1. Why could the United States be able to run continual balance of payments deficits during the Bretton Woods period? Why could other countries not run persistent deficits without losing their...

1. Why could the United States be able to run continual balance of payments deficits during the Bretton Woods period? Why could other countries not run persistent deficits without losing their reserves? Explain.

2. Describe the Bretton Woods system of exchange rate determination that was set up at the end of World War II and lasted until 1973.