The Bretton Woods Agreement Encourages Free Trade (Great Events from History II: Business and Commerce Series)
Article abstract: The Bretton Woods Agreement provided the basis for the postwar fixed exchange rate system and the establishment of the International Monetary Fund (IMF) and the World Bank.
Summary of Event
In July of 1944, about seven hundred delegates, representing forty-four countries, met at the first United Nations Monetary and Financial Conference, held at the Mount Washington Hotel in Bretton Woods, New Hampshire. The purpose of the conference was to develop an agreement to deal with the organization of the post-World War II international economy, more specifically the promotion of exchange rate stability and the restoration of international trade.
In a message, read in the conference’s keynote speech, President Franklin D. Roosevelt warned the delegates of the importance and necessity of cooperating in peacetime as they had in war. He expressed his utmost confidence in their ability to work out their differences. He indicated further that this conference marked the beginning of a broad effort to bring about international cooperation with the aim of developing a sound, dynamic, expanding world economy, with rising living standards for all, in the postwar period.
The conference ran from July 1 to July 22, 1944. The immediate purpose of the conference was the development of a stabilization fund and a vehicle to finance postwar reconstruction. The agreements made were not binding on any of...
(The entire section is 2189 words.)
Want to Read More?
Subscribe now to read the rest of this article. Plus get complete access to 30,000+ study guides!