Bretton Woods Conference: Background and Outcomes

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Bretton Woods Conference

The Background

During the World War I and World War II the international monetary system is split into several competing currency blocs, the fierce trade war between the global recession and nation. In the post-World War II, at the end of World War II, the U.S. dollar has enjoyed a unique and powerful position in international trade and also because British and American governments for consideration of national interests, ideas and design of post-war international monetary system, proposed separately by the "White Plan" and "the Keynes plan. "Huai-held plans" and "Keynes Plan" with is the establishment of international financial institutions, stabilize the exchange rate, the expansion of international trade, and promoting world economic development for the purpose, but the way they operate. Because the United States boarded the supreme world leader of the capitalist world economic crisis and after World War II, the dollar's international status because of its strength of the international gold reserves to get a solid, the two sides reached in April 1944, reflects the White Plan on the establishment of the GB currency experts of the Fund a joint statement. "

What is “Bretton woods conference”?

The United Nations Monetary and Financial Conference, commonly known as the Bretton Woods conference, Bretton woods system or Bretton woods agreements. It was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after the conclusion of World War II. The conference was held from 1-22 July 1944, when the agreements were signed to set up the International Bank for Reconstruction and Development (IBRD), the General Agreement on Tariffs and Trade (GATT), and the International Monetary Fund (IMF). It established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century and also was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states. As a result of the conference, the Bretton Woods system of exchange rate management was set up, which remained in place until itself collapsed in 1971, when President Richard Nixon severed the link between the dollar and gold.

What they agreed:
* Formation of the IMF and the IBRD (World Bank)
* Adjustably secured foreign exchange market rate system: * Exchange rate were fixed, with the provision of changing them if necessary * Currencies were required to be convertible for trade related and other current account transactions * All member countries were required to subscribe to the IMF’s capital * if exchange rate might not be favorable to a country’s balance of payments position, the governments had the power to revise them by up to 10% Who’s involved?

Delegation from around the world
  Australia|                     India|     Belgium|                     Iran|     Bolivia|                     Iraq|     Brazil|                     Liberia|     Canada|                     Luxembourg|     Chile|                     Mexico|     China|                     Netherlands|     Colombia|                     New Zealand|     Costa Rica|                     Nicaragua|     Cuba|                     Norway|     Czechoslovakia|                     Panama|     Dominican Republic|                     Paraguay|     Ecuador|                     Peru|     Egypt|                     Philippines|     El Salvador|                     Poland|     Ethiopia|                     Union of South Africa|     France|                     Union of Soviet Socialist Republics (USSR)|     Greece|                     United Kingdom|     Guatemala|                     United States|     Haiti|                     Uruguay|     Honduras|...
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