ECO 120 Study Guide - Final Guide: Bretton Woods Conference, United States Dollar, Free Trade
Document Summary
Aimed to establish an international monetary system, as well as liberalize trade, create a fixed exchange rate and aid in capital mobility. 1944- all allies invited- yet us and uk dominate the conference as they were the strongest of the allies post wwi. Trade liberalization in the general agreement on trade and tariffs. Fixed exchange rate system- the bretton woods system- for settling international standards and replacing gold standard. Creation of the international monetary fund and the world bank. Imf task is to act as an international lender of last resort to assist countries with chronic imbalances. World bank"s tasks is to assist countries with economic recovery. One ounce of gold= 35 us dollars. Countries peg their currencies to gold, it was effectively a dollar-gold standard . Benefit- countries could earn interest on dollar deposits or us dollar securities. Dollar balances easier to transfer as compared to gold.
