What does Bretton Woods system mean?

Bretton Woods system meaning in Law Dictionary

Established the principles for commercial and monetary relations among the planet's significant professional states in the mid twentieth century. The Bretton Woods system had been the initial exemplory case of a completely negotiated monetary purchase intended to control financial relations among independent nation-states. Getting ready to rebuild the international economic climate as World War II had been still raging, 730 delegates from all 44 Allied nations gathered on Mount Washington Hotel in Bretton Woods, New Hampshire, usa, for United Nations financial and Financial meeting. The delegates deliberated upon and signed the Bretton Woods Agreements through the very first three weeks of July 1944.

Bretton Woods system meaning in Business Dictionary

pair of multilateral agreements on worldwide economic relations, negotiated at UN Monetary and Financial meeting presented in July 1944 (within the aftermath of 2nd world War) attended by the finance ministers of the UK, US, and other Allied countries. The most important targets of this summit included (1) financing the repair of postwar Europe, and (2) preventing unstable trade prices and competitive-devaluations of pre-Second World War Western economies by instituting fixed trade prices. World Bank (after that called International Bank for Reconstruction & Development or IBRD) was founded to provide the very first goal, and Global Monetary Fund (IMF) for the second. The device, but collapsed in 1971 as soon as the US suspended the buck's convertibility ($20.67 per ounce) to gold in August, devalued it in December, and thereafter chosen a floating exchange price. Regardless of the demise regarding the System, both World Bank and IMF consistently play crucial (albeit changed) functions in the current international finance. Bretton Woods is the title associated with township in the US state of brand new Hampshire where in actuality the negotiations were performed.