1/ Impossible Trinity in the Post-war world (1944-today), some thoughts:
IT is the theoretical and empirical reality that dictates that Nation-states can only enjoy 2 of 3 economic privileges listed below;
-Sovereign monetary policy
-Free Capital flow
-Fixed exchange rate
2/ During the Bretton Woods convention of 1944 the majority of western powers came together to lay the groundwork of a new global monetary system. The USD was to be pegged to gold, other countries pegged their currency to the USD, making the dollar the world reserve currency.