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 leftfield in un steadfast conditions. Infrastructures were in flux, economies were in isolation, and change order were explosive especially in the 1930?s. Alongside these prevailing conditions, an change magnitude 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 fiscal institution that would control change rates and strengthen external trade. It was too hoped that such serve would aid in the retrieval of the Europe and curb the effectuate of the WW1 (Carbaugh, 2002). During the year 1944, representatives of 45 countries self-contained at the United Nations fiscal and Financial Conference in Bretton Woods, New Hampshire. Throughout this collision, they discussed a variety of financial issues including exchange rates and protectionist trade, on with the European recovery from the w ar. 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 cardinal international institutions: the foreign financial Fund (IMF) and the International deposit for Reconstruction and Development (the World intrust). The goal was to provide economic aid for reconstruction of postwar Europe (Hawtrey, 1946). While the International tack nerve that was proposed in the Bretton Woods Agreement was non endorsed by the United States, it was posterior backed in 1947 scarce 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 r egain stable economies. The... ! If you want to get a full essay, order it on our website: BestEssayCheap.com

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