The Bretton Woods currency agreement ultimately fell apart because Most countries preferred the fived exchange rate mechanism of the gold standard it was difficult to maintain a fixed rate for doilar-gold given inflationary. pressures in America. C. Countries were unwilling to cooperate because of wars and political tension Countries were unwilling to cooperate beczuse of wars and political tension Other countries preferred to use their own currencies rather than U.S. dollars Before the crisis: Thailand had a current account surplus Thailand had a current account deficit funding by foreign investments Thailand currency was artificially weak due to massive foreign investment Which of the following is true Thailand currency strengthened wis investors puiled out capital Thailand faced a dilemma choosing between raising interest rates, raising taxes and lowering government spending The Thai currency fell sharply, which helped the country by lowering inflation and reducing exports