Outline the main pillars of the Bretton Woods System and discuss how its architecture led to both post-war stability and prosperity in the developed world throughout the 'long-boom'.

After the First universe War many countries were leave in un durable conditions. Infrastructures were in flux, economies were in isolation, and change rate were explosive especially in the 1930?s. Alongside these prevailing conditions, an increase come up of governments enforced restrictive trade policies. As a result, the coupled States in conjunction with Great Britain in the 1940?s created proposals for the figure of speech of a new fiscal institution that would control substitute rates and strengthen international trade. It was too hoped that such serve would aid in the retrieval of the Europe and curb the effectuate of the WW1 (Carbaugh, 2002). During the year 1944, representatives of 45 countries garner at the United Nations fiscal and Financial Conference in Bretton Woods, New Hampshire. Throughout this shock, they discussed a variety of financial issues including exchange rates and protectionist trade, along with the European recovery from the war. The culminati on of this meeting resulted in the Bretton Woods Agreement. Its lock was to create an international pecuniary system of convertible currencies, refractory exchange rates along with free trade. As a catalyst to these functions, the agreement created devil international institutions: the world(prenominal) financial Fund (IMF) and the International banking concern for Reconstruction and Development (the World bound). The goal was to provide economical aid for reconstruction of postwar Europe (Hawtrey, 1946).

While the International dispense transcription that was proposed in the Bretton Woods Agreement was not endorsed by the United States, it was poste! rior backed in 1947 provided in the form of the familiar Agreement on Tariffs and Trade (GATT). This new agreement was also ratified by 23 other countries, and would grow to plough the World Trade Organization that we are familiar with today. In recent decades the World Bank and IMF have been responsible in aiding numerous countries regain stable economies. The... If you want to get a full essay, order it on our website: BestEssayCheap.com

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