Bretton Woods 1944 Agreements

This useful collection of basic documents and essays marks the 75th anniversary of the Bretton Woods Agreement of 20 July 1944. The Bretton Woods system is primarily identified with the monetary agreement put in place by the International Monetary Fund (IMF) to help countries maintain fixed exchange rates. In fact, the IMF was part of a series of institutions, including the International Bank for Reconstruction and Development (IBRD), the forerunner of the World Bank, and, three years later, the General Agreement on Tariffs and Trade, the precursor to the World Trade Organization much later. At that time, the gaps between White and Keynes` plans seemed enormous. White actually wanted a fund that automatically reverses destabilizing financial capital flows. White proposed a new monetary institution called the stabilization fund, which should be financed „with a finite pool of national currencies and gold. this would effectively limit the supply of reserve credits.“ Keynes wanted to encourage the United States, Britain, and the rest of Europe to help rebuild after World War II. [28] Keynes, in his speech at the final meeting of the Bretton Woods Conference on July 22, 1944, outlined the difficulty of creating a system that every nation could accept and declared: about 730 delegates from 44 countries met at Bretton Woods in July 1944 with the main objective of creating an effective exchange rate system. Prevent competitive currency devaluations and promote international economic growth. The Bretton Woods agreement and the Bretton Woods system have been essential to these objectives. The Bretton Woods agreement also created two important organizations: the International Monetary Fund (IMF) and the World Bank. While the Bretton Woods system was dismantled in the 1970s, both the IMF and the World Bank remained strong pillars for international currency exchange.

The Bretton Woods Agreement of 1944 established a new global monetary system. It replaced the gold standard with the US dollar as the world currency. In this way, it established America as a dominant power in the global economy. Roosevelt and Henry Morgenthau insisted that the Big Four (the United States, Britain, the Soviet Union, and China) participate in the Bretton Woods Conference in 1944,32] but their goal was thwarted when the Soviet Union did not join the IMF. In the past, the reasons why the Soviet Union decided not to subscribe to the articles until December 1945 have been the subject of speculation. But since the publication of relevant Soviet archives, it is now clear that the Soviet calculation was based on the behaviour of the parties who had actually expressed their agreement with the Bretton Woods agreements. [Citation required] The long debates on ratification that have taken place in both the United Kingdom and the United States. . . .

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