This useful collection of basic documents and essays marks the 75th anniversary of the Bretton Woods Agreement of July 20, 1944. The Bretton Woods system is mainly identified by the monetary agreement that established the International Monetary Fund (IMF) to help countries maintain fixed exchange rates. In fact, the IMF was part of a group of interdependent institutions, including the International Bank for Reconstruction and Development (IBRD), the precursor to the World Bank, and, three years later, the General Agreement on Tariffs and Trade, a precursor to the World Trade Organization, much later. Although the organizations proposed by Keynes and White were similar in size, philosophy and function, they differed. From 1942 to the spring of 1944, numerous bilateral and multilateral meetings of Allied financial experts were held to agree on a common approach. Finally, on 21 April 1944, Allied leaders issued a “joint statement of experts on the creation of an International Monetary Fund.” This statement served as the basis for the Bretton Woods negotiations. After a pre-conference in Atlantic City in mid-June 1944, the Bretton Woods Conference was held on July 1, 1944. Three weeks later, delegates signed the final act of the UN Financial and Monetary Conference, which contained charters that set out the objectives and mechanisms of the IMF and THE IBRD. The Balance – Bretton Woods System and 1944 Agreement As I said, 44 allied nations met in 1944 in Bretton Woods, NH, for the United Nations Monetary and Financial Conference. At that time, the world economy was very wobbly and allied nations wanted to meet to discuss and find a solution to the dominant problems that tormented currency exchange.
The summit also looked for strategies and regulations that would maximize the potential benefits and benefits that could be derived from the global trading system. The conference resulted in the Bretton Woods agreement and the Bretton Woods system. In 1944, in Bretton Woods, following the collective conventional wisdom of the time, representatives of all leading allied nations collectively supported a regulated fixed exchange rate system, indirectly disciplined by a gold-related dollar – a system based on a regulated market economy, with strict controls on money values.