It is a 'multilateral institution that lends money to governments and government agencies for development projects'. Bordo, Michael D. Part 7 considers why Bretton Woods was so stable and yet so short-lived.
How far the emergence of the Euro can be seen against the background of the need for exchange rate stability and the creation of an optimal currency area? New York: Macmillan.
Part 2 compares the macro performance of Bretton Woods with preceding and subsequent monetary regimes. The US ended the tying of the Dollar to the Gold Standard and left it and other global currencies to float free.
The system was designed to regulate 'the par value exchange rates and lend reserve currencies to nations with trade deficits' thus enabling them with international assistance to re-build their economies and later to help finance the poor or developing countries with their reconstruction projects Stephey,p.
The Bretton Woods system is chiefly identified with the monetary agreement that set up the International Monetary Fund IMF to help countries maintain fixed exchange rates.
The essay will show that the system has been relatively successful and contributed towards the development of global free trade amongst nations and helped prevent the kind of economic disasters such as the Great Depression of the s, which was felt to have been one of the causes of World War The Memoirs of Cordell Hull: vol.
Part 3 surveys the origins of Bretton Woods: the perceived problems of the inter war period; the plans for a new international monetary order and the steps leading to the outcome -- the Articles of Agreement. The US government tried to help underdeveloped nations to export wood, livestock and other commodities How do you explain the rise and fall of the Bretton Woods system?