Bretton Woods Agreement

The Bretton Woods Agreement, established in 1944, was a landmark accord among 44 nations aimed at creating a stable international monetary system after World War II. It set fixed exchange rates between currencies and the U.S. dollar, which was linked to gold. This system promoted trade and economic growth by reducing uncertainties in currency values. The agreement also led to the formation of major financial institutions like the International Monetary Fund (IMF) and the World Bank, designed to foster global economic cooperation and development. Bretton Woods ultimately ended in the early 1970s, transitioning to a system of floating exchange rates.