The Bretton Woods System Essay - 2073 Words

The period referred to as the Golden Age was between 1950 and 1973. There was rapid growth in the US economy during this time, the economies of Europe and Japan also had very high rates of growth. The world’s advanced countries spurred a commodities boom which benefited natural resource-rich countries such as the oil rich ones in the Middle East, as well as the industrial nations of East Asia i.e. Singapore, Thailand, China etc. The Bretton Woods Conference, which is officially known as the United Nations Monetary and Financial Conference took place from July 1 to July 22 in 1944, in Bretton Woods, New Hampshire in the United States. It was a gathering of delegates from 44 different countries that met in order to try and formulate a†¦show more content†¦The countries that joined the IMF between 1945 and 1971 had initially agreed to keep their exchange rates at rates that could be adjusted only in instances to correct a fundamental disequilibrium in the balance of payments, and only with the IMFs agreement. This system prevailed until 1971, when the U.S. government suspended the convertibility of the dollar, as well as the dollar reserves held by other governments, into gold. The International Bank for Reconstruction and Development (World Bank) is probably the world’s single most important source of financial aid for developing nations. It was one of the institutions founded in 1944 at the Bretton Woods Conference to help Europe recover from World War II. The International Bank for Reconstruction and Development (IBRD) is only one of five institutions that make up the organization known as the World Bank Group. IBRD is the part of the World Bank that works with creditworthy poorer as well as middle-income countries by promoting sustainable, equitable and job-creating growth, reduce poverty and address issues of regional and global importance. It ccommenced operations on June 25, 1946, and then approved its first loan on May 9, 1947. This third major institution was simply the set of rules for the monetaryShow MoreRelated The Bretton Woods System Essay1766 Words   |  8 Pages The theme of this essay outlines two things. One, the key elements of Bretton woods system and second, the characterisation of Bretton woods system by Ruggie as ‘embedded liberalism’, and how far he succeeds in it. The Bretton woods system is widely referred to the international monetary regime, which prevailed from the end of the World War 2 until the early 1970s. After the end of the World War 2, the need of international monetary framework to boost trade and economic; growth andRead MoreHistory Of Bretton Woods System And Jamaica1436 Words   |  6 PagesHISTORY OF BRETTON WOODS SYSTEM AND JAMAICA BRETTON WOODS SYSTEM The Bretton Woods System was formed as a result of the collapse of the Golden Standard and The Great Depression. These closely related events prompted the need to establish an international monetary system, whose main aim was to revive the economies of the Post World War as well as fostering international economic relations that would end inter-war conflicts. Furthermore this historic event took place in July 1944 in New Hampshire wherebyRead MoreWas the Bretton Woods System successful?2025 Words   |  9 PagesWhat was the Bretton Woods System? The end of the World War II marked the beginning of a new era for the world economy. The Bretton Woods System refers to an agreement made at an international conference between 44 nations in 1944 at Bretton Woods, New Hampshire, United States of America (hereby U.S.) on the 22nd of July 1944. It was aimed at maintaining stability in the monetary system in the post World War II period. â€Å"In an effort to free international trade and fund postwar reconstruction theRead MoreMechanism Behind The Foundation Of Bretton Woods System1693 Words   |  7 Pagesmechanism behind the foundation of Bretton Woods system and how this system worked from 1944 to 1973. Analysis includes the mechanism of the fixed exchange rate regime based on gold and the US dollar and also includes the factors and reasons that led the system to collapse. Background of Foundation of the Bretton Woods System As far back as the World War II, the United States has been attempting to replace the Great Britain, establishing a world currency system centred in US dollar. After the warRead MoreThe Bretton Woods System On The World s Natural Riches872 Words   |  4 Pagesmultinational corporations. The Bretton Woods system was aimed to boost the production and consumption of commodities. The World Bank and the IMF, led by the US, financed corporations and exploitation of resources. The Bretton Woods system was supposed to make use of the world’s natural riches. The fall of Communism in the world gave more power to the corporations and led to the creation of the free market system. The US government tried to help underdeveloped nations to export wood, livestock and other commoditiesRead MoreHow do you explain the rise and fall of the Bretton Woods system? and the creation of an optimal currency area?2535 Words   |  11 PagesHow do you explain the rise and fall of the Bretton Woods sys tem? How far the emergence of the Euro can be seen against the background of the need for exchange rate stability and the creation of an optimal currency area? 1) The rise and fall of the Bretton Woods system: The origins of the Bretton Woods system are to be found in the convergence of several key conditions: the shared experiences of the Great Depression, the concentration of power in a small number of states, and the presence of aRead MoreWhy did the Bretton Woods system came to an end?1504 Words   |  7 Pagesï » ¿Why did the Bretton Woods system come to an end? The Bretton Woods system was created in July 1944 by the United States and its allies in order to formulate a plan for European recovery and create a new postwar international monetary and financial system that was supposed to encourage grow and development (Balaam, Dillam 2011). The Bretton Woods financial and monetary structure was supposed to ensure exchange rate stability and encourage its member countries to eliminated exchange rate restrictionsRead MoreThe Stystem Developed in the The Bretton Woods Conference862 Words   |  3 PagesIntroduction: The Bretton Woods Conference in New Hampshire in 1944 was a unique event in which representatives of two nations influenced the planning of the world monetary system (Scammell, 1982). The Article of Agreement was a negotiation between Britain and The United States, which was accepted and signed by 44 other nations (Ikenberry, 1933). The conference saw the establishment of the two most significant financial institutions, The International Bank for Reconstruction and Development [WorldRead MoreThe Major Cornerstone For The U.s.s Economic Prosperity And International Hegemony1217 Words   |  5 PagesAs the major cornerstone for the U.S.’S economic prosperity and international hegemony, following the change of the Bretton Woods System to the Petrodollar system in 1971; I ve found the largest independent factor to influence American international interests has been the implementation and preserva The Petrodollar System From the Gold Standard To Black Gold By: Gibson J.T. Intro Behind the global power of the U.S. dollar, hides the most significant form of currency you ve probablyRead MoreRisk Is Everyone s Best Friend And Worst Nightmare1689 Words   |  7 Pagesgains. This causes market fluctuations, instability, and the like. We will examine these principles in the context of the pre- and post-1971 financial system with regards to the risk, innovation, and implications of the leaving the Bretton Woods system. The idea behind the Bretton Woods system was to standardize and stabilize the world financial system during and after WWII. This was done through a variety of means, the most important being regulating international exchange rates, tieing the US Dollar