Bretton Woods Agreement - The Attack on World’s Economies
All of the biggest economic catastrophes that have occurred around the world have been caused by wealthy nations. World Wars I and II provide unequivocal proof of this. These same affluent nations have maintained a strong direct hold on world’s market till the end of World War II. But after that, the drama of United Nations emerged and a new advanced form of looting the natural resources of underdeveloped countries was started.
In reaction
to this economic upheaval brought on by World War II, the United States and its
allies established the Bretton Woods Agreement, a monetary system, in 1944. This
agreement establishing fixed exchange rates between nations and establishing a
system of convertible currencies that were pegged to the value of gold, it was
intended to create so called global economic stability.
The agreement
also established the International Monetary Fund and the World Bank, two
significant financial organizations with the mission of aiding developing
nations financially, promoting world economic expansion and to make the more
dependent nations to produce resources for US and its allies.
The Bretton
Woods system was in place until 1971, when the United States terminated its
convertibility to gold. This was followed by a time when exchange rates were
free to fluctuate and economic volatility rose.
The Bretton
Woods Agreement's legacy still continues to influence discussions & decisions
about the most effective strategies for fostering economic stability of world’s
super powers.
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