Bretton Woods Agreement

(redirected from Bretton Woods system)
Also found in: Wikipedia.

Bretton Woods Agreement

An agreement signed by the original United Nations members in 1944 that established the International Monetary Fund (IMF) and the post-World War II international monetary system of fixed exchange rates.

Bretton Woods Agreement

An international agreement on monetary and currency policy for the period following World War II. Initially crafted in 1944 while the war was ongoing, it came into effect the following year. Among other things, the Bretton Woods Agreement created the International Monetary Fund and the International Bank for Reconstruction and Development. The latter organization was created to finance post-war reconstruction, while the IMF was intended to stabilize exchanges rates between currencies and to serve as a country's lender of last resort.

A key component of the Bretton Woods Agreement was the requirement that all countries peg their currencies to a certain amount of gold. In practice, most currencies were pegged to the U.S. dollar, which was itself pegged to gold. This helped the IMF accomplish its stated goals to stabilize currencies that had experienced a large amount of wartime inflation. The Agreement worked relatively well until the United States unilaterally depegged from gold in 1971. See also: Keynesian economics, Nixon shock.
References in periodicals archive ?
In the early 1970s, the breakdown of the Bretton Woods system of semi-fixed exchange rates was one such useful crisis.
Ironically, there are curious parallels between the global role of the United States since the end of the Bretton Woods system and the role of Germany in the Eurozone.
Since the end of the Bretton Woods system, however, the behavior of exchange rates has not comported with Friedman's expectations for a freely floating international monetary regime.
The original Bretton Woods system, which lasted in some form from 1944 to 1971, was a formally negotiated system with a series of fixed exchange rates.
One key feature of the Bretton Woods system was that countries would tie their exchange rates to the US dollar.
the Bretton Woods system of fixed exchange in 1973, and the transition
Within the framework of the World Anti-Crisis Conference, which is the main international event of the year dedicated to the 70th anniversary of the Bretton Woods system, the draft of the World Anti-Crisis Concept with the direct support of UN will be presented.
Part II addresses the current and historical roles of the West, including the effects of slavery, colonialism, globalization, foreign aid and the Bretton Woods system.
The heart of the Bretton Woods system was the unique link of the American dollar to gold.
Referring to the IMF and World Bank, which were formed shortly after the Bretton Woods system was established 70 years ago, he questions whether they should play such a dominant role in creating a more ethical and stable world economy.
Steil is perhaps at his best when articulating how the Bretton Woods system differed from the classical gold standard--a difference that would ultimately lead to the failure of Bretton Woods.
Keynes' framework was the Bretton Woods system of the World Bank and IMF.