Bretton Woods

The Bretton Woods Conference in 1944 was a meeting of countries to create a new international monetary system after World War II. They agreed to peg currencies to the US dollar, which was convertible to gold, providing stability and promoting global trade. The US dollar became the primary reserve currency, and institutions like the International Monetary Fund (IMF) and World Bank were established to support economic stability and development. The system lasted until the early 1970s when the US ended gold convertibility, leading to floating exchange rates. Overall, Bretton Woods aimed to foster international economic cooperation and prevent competitive devaluations.