Brettonwoods Basics 1. 1% exchange rate movements 2. exchangerate hashtagprices reflects trade. 3. Gold convertability to Fixed Price.
Bretton Woods strengthened. What changed, 1936 Tripartite Agreement ended 1930’s FX Tradewars by agree to end FX Competitive Devaluations, specifically UK and French Franc.
Led to Bretton woods.
1. Omnibus Trade and Competitiveness Act 1988. 2. The Trade Facilitation and Trade Enforcement Act of 2015
The Omnibus Trade and Competitiveness Act of 1988 requires the Treasury to provide semiannual reports to Congress on international economic and exchange rate policy. Under Section 3004 of the 1988 Act, the Secretary must: “consider whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade.” This determination is subject to a broad range of factors, including not only trade and current account imbalances and FX intervention , but also currency developments, exchange rate practices, foreign exchange reserve coverage, capital controls, and monetary policy