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What was the Bretton Woods system? Why did it breakdown?
In order to answer properly this question, it is important to establish first the main principles of this international monetary regime and its developments after 1945 and then to analyse the principal factors contributing on the breakdown and the end of this system.
In July 1944 as the World War 2 was still raging, Allies and other capitalist countries gathered in Bretton Woods to cast the foundations of a new international monetary system that would rein the Western financial world until mid of 1970s. The new system had two important elements: created a liberal international trading order and on the other side an international monetary regime. After the experience of the Great Depression and trauma caused to world economy and trade by the World War Two, the Bretton Wood system envisioned a new liberal trading order.
According to this system, Governments were free to pursue their national economic interests but in a......
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Title: International Relations
Approximate Word Count: 2245
Approximate Pages: 9 (250 words per double-spaced page)
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