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What is The Bretton Woods Monetary System (1944 )? What’s the “Bretton Woods” System?
How Bretton Woods Agreement Change the World Economy?
The Bretton Woods Agreement or Bretton Woods System was an agreement that regulated the international monetary system that existed after World War II. The main goal of the agreement was to prevent competitive devaluation of the currencies of the Western Bloc and to prepare the way for an eventual convertibility of the currencies to gold at a fixed rate. This goal was achieved by pegging their currencies to the U.S. dollar which itself was pegged to gold. It created a system of fixed but adjustable exchange rates, thus setting the foundations for the post-World War II economic order.
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