What was the Bretton Woods system?
Q: What was the Bretton Woods system?
A: The Bretton Woods system was the first system used to control the value of money between different countries. It meant that each country had to have a monetary policy that kept the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold. The International Monetary Fund (IMF) was created to fight against temporary imbalances of payments.
Q: When did plans for the Bretton Woods system start?
A: Plans to rebuild the international economic system after the end of World War II started before the war ended.
Q: Where did delegates from all 44 Allies meet for negotiations?
A: Delegates from all 44 Allies met in Bretton Woods, New Hampshire for the United Nations Monetary and Financial Conference.
Q: What organizations were created as part of this agreement?
A: As part of this agreement, two organizations were created - The International Bank for Reconstruction and Development (IBRD) and The International Monetary Fund (IMF). These organizations became active in 1946 after enough countries had ratified the agreement.
Q: How long did it take before enough countries ratified this agreement?
A: It took until 1946 before enough countries had ratified this agreement.
Q: How successful was the Bretton Woods System?
A: Until 1971, when faced with increasing strain, The United States decided not to allow conversion of dollars to gold and caused collapse,the Bretton Woods System worked successfully and controlled conflict while achieving common goals set by leading states who created it, particularly those led by The United States.
