dollar standard

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A system of exchange rate management in which other countries peg the exchange rates of their currencies with the US dollar, and hold their foreign exchange reserves mainly in the form of US dollars. It was argued that the Bretton Woods exchange rate system operating in the 1950s and 1960s was effectively a dollar standard. More recently the decline of the dominant position of the United States in the world economy has made the adoption of a dollar standard less likely.

Subjects: Economics.

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