This refers to the economic agreement reached at a meeting in Bretton Woods, New Hampshire in 1944 that aimed to successfully manage the post-WWII world economy. It's main institutional components are the World Bank and the International Monetary Fund.
3/4. There is one more element that is crucial to the so-called “Bretton Woods system”
The Bretton Woods System was adopted to set a regime of monetary exchange in the form of the gold standard. The system was discontinued in 1971 because of many variables, mainly that the dollar became over-appreciated and the gold reserves were depleting while the economic burdens were rising.
The Bretton Woods system was adopted to put in place a regime of monetary exchange–the gold standard. This system was discontinued in 1971 due to many variables including over-appreciation of the dollar and depleting gold reserves with rising economic burdens.
Closer. What was the “pole” or “linchpin” of the BW system hat replaced gold?
The linchpin of the Bretton Woods System was to replace the dollar
To use dollar as a linchpin for the participating currencies.
The Bretton Woods system was developed after the World War II, aimed to rebuild the international economic system. As consequence of this system, the International Monetary Fund and the World Bank where formed. They adopted the gold standard, a monetary system where currencies maintained a fixed exchange rate to this metal. After 1971 the US terminated the convertibility to gold and substituted it for the US currency as a linchpin for other currencies.
This refers to the economic agreement reached at a meeting in Bretton Woods, New Hampshire in 1944 that aimed to successfully manage the post-WWII world economy. It's main institutional components are the World Bank and the International Monetary Fund.
3/4. There is one more element that is crucial to the so-called “Bretton Woods system”
The Bretton Woods System was adopted to set a regime of monetary exchange in the form of the gold standard. The system was discontinued in 1971 because of many variables, mainly that the dollar became over-appreciated and the gold reserves were depleting while the economic burdens were rising.
The Bretton Woods system was adopted to put in place a regime of monetary exchange–the gold standard. This system was discontinued in 1971 due to many variables including over-appreciation of the dollar and depleting gold reserves with rising economic burdens.
Closer. What was the “pole” or “linchpin” of the BW system hat replaced gold?
The linchpin of the Bretton Woods System was to replace the dollar
To use dollar as a linchpin for the participating currencies.
The Bretton Woods system was developed after the World War II, aimed to rebuild the international economic system. As consequence of this system, the International Monetary Fund and the World Bank where formed. They adopted the gold standard, a monetary system where currencies maintained a fixed exchange rate to this metal. After 1971 the US terminated the convertibility to gold and substituted it for the US currency as a linchpin for other currencies.