What are the roles of The Bretton Woods System and Its Dissolution?
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What are the roles of The Bretton Woods System and Its Dissolution?
What are the roles of The Bretton Woods System and Its Dissolution?
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Answer:
The Bretton Woods System required a currency peg to the U.S. dollar which was in turn pegged to the price of gold. The Bretton Woods System collapsed in the 1970s but created a lasting influence on international currency exchange and trade through its development of the IMF and World Bank.
Explanation:
The Bretton Woods System included 44 countries. These countries were brought together to help regulate and promote international trade across borders. As with the benefits of all currency pegging regimes, currency pegs are expected to provide currency stabilization for trade of goods and services as well as financing.