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 left hand in un changeless 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 financial institution that would control alter rates and strengthen supranational trade. It was too hoped that such serve would aid in the recovery of the Europe and curb the effectuate of the WW1 (Carbaugh, 2002). During the year 1944, representatives of 45 countries collect at the United Nations fiscal and Financial Conference in Bretton Woods, New Hampshire. Throughout this contact, they discussed a variety of financial issues including exchange rates and protectionist trade, along with the European recovery from the war. The culmination 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 both international institutions: the external financial Fund (IMF) and the International argot for Reconstruction and Development (the World verify). The goal was to provide sparing aid for reconstruction of postwar Europe (Hawtrey, 1946).

While the International barter system that was proposed in the Bretton Woods Agreement was non endorsed by the United States, it was posterior backed in 1947 m! erely 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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