Describe the most important features of the Bretton Woods Agreement. Why did the Bretton Woods ‘system’ break down and what has replaced it? Word Count: 2503 In July‚ 1944‚ 730 delegates from the 44 Allied nations got together and hold an international conference (Bretton Woods conference) for three weeks in Bretton Woods‚ New Hampshire. During this conference‚ Bretton Woods Agreement was signed and passed (Investopedia‚ 2005‚ para.1). The Bretton Woods Agreement is an agreement which regards
Premium Bretton Woods system Currency Foreign exchange market
The Bretton Woods System : 1946- 1971 The Bretton Woods System (BWS) was implemented in 1946 under the Bretton Woods Agreement‚ each government obliged to maintain a fixed exchange rate for its currency vis-à-vis the dollar or gold. As one ounce of gold was set equal to $35‚ fixing a currency’s gold price was equivalent to setting its exchange rate relative to the dollar. The fixed exchange rates were maintained by official intervention in the foreign exchange markets. This intervention was
Premium Bretton Woods system Foreign exchange market Inflation
Economic Research Volume Title: A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform Volume Author/Editor: Michael D. Bordo and Barry Eichengreen‚ editors Volume Publisher: University of Chicago Press Volume ISBN: 0-226-06587-1 Volume URL: http://www.nber.org/books/bord93-1 Conference Date: October 3-6‚ 1991 Publication Date: January 1993 Chapter Title: The Collapse of the Bretton Woods Fixed Exchange Rate System Chapter Author: Peter M. Garber Chapter URL: http://www
Premium Bretton Woods system Inflation Monetary policy
INCEPTION OF BRETTON WOODS The Bretton Woods system is commonly understood to refer to the international monetary regime that prevailed from the end of World War II until the early 1970s. Taking its name from the site of the 1944 conference that created the Bretton Woods Institutions namely‚ International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD) - often simply known as the World Bank‚ the Bretton Woods system was history’s first example of a fully negotiated
Premium Bretton Woods system
Third World Countries have been the focus of technical and financial aid from the Bretton Woods institutions for a very long time. However‚ to date mixed thoughts and views have ran through the minds of various scholars and policy makers as regards to the role that foreign aid in particular from the IMF and the World Bank plays in the development process of LDCs. This has mostly been attributed to the high poverty levels‚ the rampant unemployment and generally the underdeveloped nature of these economies
Premium Development World Bank Developing country
1944 was the year that the Bretton Woods and the International Monetary Fund were formulated. A system that was devised after the Second World War by the United States‚ United Kingdom and 42 other nations after the war. The Bretton Woods system fixed the dollar to the price of gold and created an international platform for currency exchange. Before this system was implemented‚ the gold standard was in operation from 1880 to 1914. Under this‚ each nation was to define the gold content of its currency
Premium Monetary policy Inflation Central bank
Bretton Woods Conference Location: Hotel Complex Bretton Woods (New Hampshire - U.S.) Date: Between 1 and July 22‚ 1944. Participants: Forty-four countries were attending‚ half were underdeveloped‚ twenty were from Latin America‚ besides India‚ Iran‚ Iraq‚ China‚ Egypt‚ Ethiopia and the Philippines. Attended Eastern Europe Soviet Union‚ Czechoslovakia and Poland. Fees: On a total capital of 8‚800 million USD‚ the U.S. will be for a fee of 2‚740 million (equivalent to 31.1%)‚ the United Kingdom
Premium Bretton Woods system John Maynard Keynes International trade
the 1970s the unsustainability of the Bretton Woods System (BWS) became increasingly apparent. Evaluate the factors which led to the collapse of the BWS and its impact on the subsequent evolution of the international political economy Following the Second World War‚ the Bretton Woods system was implemented as a means of monetary management among independent nation states. It was based on Keynesian economics and a shared belief in capitalism. Bretton Woods‚ BWS‚ was considered a necessary response
Premium Monetary policy Bretton Woods system Inflation
BARBADOS COMMUNITY COLLEGE DIVISION OF COMMERCE ASSOCIATE DEGREE IN ARTS DEPARTMENT OF GOVERNMENT AND POLITICS STUDIES SEMESTER 2: JANUARY-MAY 2012 GOVT 202: CARIBBEAN POLITICAL ECONOMY “The Bretton wood institutions have failed to keep the global economy stable and consequential efforts to stabalise and structurally adjust over the years have resulted in the deleterious effects particularly in the Caribbean business environment.” Critically discuss this above statement while suggesting
Premium Bretton Woods system Monetary policy
by globalisation. Bretton Woods’s institutions comprises of International Monetary Fund (IMF)‚ World Bank (WB) and later‚ World Trade Organisation (WTO). Despite the rapid change in technology and infrastructure around us‚ for certain countries nothing much has changed‚ or minimally changed since 1944. There are countries‚ still plagued with poverty and poor performing economies‚ riddled with debt. The only unscathed nations are the ones who have benefitted from Bretton Woods Institutions by implementing
Premium International Monetary Fund World Bank International trade