The Bretton Woods Agreement (1946-73) Countries

The Bretton Woods Agreement of 1946-73 was a landmark international agreement that established the post-World War II financial system. The agreement was named after the town of Bretton Woods, New Hampshire, where representatives of 44 countries met to create a new global monetary system that aimed to stabilize exchange rates and promote international trade.

Under the Bretton Woods Agreement, which lasted until 1973, the US dollar was pegged to gold at a fixed rate of $35 per ounce. All other currencies were pegged to the US dollar at a fixed exchange rate. This meant that the US dollar became the world`s reserve currency and the basis for international trade and finance.

The countries that participated in the Bretton Woods Agreement included the United States, the United Kingdom, France, Canada, Italy, Sweden, Belgium, the Netherlands, Norway, Denmark, Ireland, Portugal, Turkey, Greece, Iceland, and Switzerland, among others. These countries were predominantly Western countries that were heavily involved in world trade and finance.

The Bretton Woods Agreement was a response to the economic chaos that followed World War II. At the time, there were no mechanisms in place to regulate international trade and finance, which led to currency fluctuations and economic instability. The Bretton Woods Agreement aimed to provide a stable and predictable system that could facilitate international trade and investment.

The Bretton Woods Agreement had a significant impact on the global economy in the post-World War II era. It provided a stable framework for international trade and finance, which helped to boost economic growth and prosperity in many countries. However, the system also had its limitations, and it eventually collapsed in the 1970s due to the increasing pressure on the US dollar and the rise of other currencies such as the Japanese yen and the German mark.

In conclusion, the Bretton Woods Agreement of 1946-73 was a historic international agreement that established the post-World War II financial system. The countries that participated in the agreement were predominantly Western countries that were heavily involved in world trade and finance. While the system had its limitations, it provided a stable framework for international trade and finance, which helped to boost economic growth and prosperity in many countries.