What Are the Key Elements of the Bretton Woods System

Question

Examlex · Accepted Answer

The Answer is The key elements of the Bretton Woods System (BWS) include the establishment of the International Monetary Fund (IMF) and the World Bank, the fixed exchange rate system, and the gold standard. The IMF was created to promote international monetary cooperation, exchange rate stability, and provide resources to member countries in need of financial assistance. The World Bank was established to provide financial and technical assistance for the reconstruction and development of war-torn and developing countries.

Under the fixed exchange rate system, member countries agreed to peg their currencies to the US dollar, which was in turn pegged to gold. This system aimed to promote stability in international trade and finance by preventing competitive devaluations and currency fluctuations. However, the system eventually collapsed in the early 1970s due to the inability to maintain the fixed exchange rates and the growing US trade deficit.

Overall, the Bretton Woods System aimed to create a stable and cooperative international monetary system to support post-World War II economic reconstruction and development.

What Are the Key Elements of the Bretton Woods System

Essay

Correct Answer:
Answered by ExamLex AI

What Are the Key Elements of the Bretton Woods System

Essay

Correct Answer:Answered by ExamLex AIShow Answer

Correct Answer:
Answered by ExamLex AI