The Bretton Woods Conference was an international gathering held in Bretton Woods, New Hampshire, United States, in July 1944. The purpose of the conference was to establish a new global financial system to stabilize the world economy after World War II.
During the conference, representatives from 44 nations came together to design an international monetary framework. The primary outcome of the conference was the creation of two key institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group.
The IMF was established to promote global economic cooperation and provide financial assistance to member countries facing balance of payment problems. It aimed to stabilize exchange rates and facilitate international trade by offering short-term loans and providing policy advice.
The IBRD was created with the objective of financing the reconstruction and development of war-torn countries. It aimed to promote economic growth, reduce poverty, and improve living standards by providing long-term loans at low interest rates for projects in sectors like infrastructure, agriculture, and education.
The Bretton Woods Conference also agreed to establish a system of fixed exchange rates, with the U.S. dollar serving as the international reserve currency tied to gold. This system, known as the Bretton Woods system, lasted until its collapse in 1971.
Overall, the Bretton Woods Conference was a landmark event that shaped the post-war international economic order and institutions, providing stability and facilitating economic development worldwide.
