Delegates from 44 allied countries attended the conference and developed a pioneering system of monetary and exchange rate management. The agreement was the first example of a fully negotiated monetary order designed to govern monetary relations between independent national states. The agreement finally came into force in 1959, when European currencies became convertible. The ideas that led to the conference were the creation of open markets and the common management of the Western political/economic order. The agreement synthesised britain`s desire for full employment and economic stability and the desire for free trade in the United States. Why a dollar? The United States held three-quarters of the world`s gold shipments. No other currency had enough gold to replace it. The dollar was 1/35 of an ounce of gold. Bretton Woods has allowed the world to slowly move from a gold standard to a U.S. dollar standard. Two world wars had destroyed the country`s main industries, which paid for the import of half of the food and almost all of its raw materials except coal. The British had no choice but to ask for help.

It was only when the United States signed a 4.4 billion pound British aid agreement on 6 December 1945 that the British Parliament ratified the Bretton Woods Agreements (which took place later in December 1945). [24] Post-war global capitalism suffered from a huge shortage of dollars. The U.S. had huge trade surpluses and U.S. reserves were huge and growing. It was necessary to reverse this river. Although all nations wanted to buy U.S. exports, the dollars had to leave the United States and be available for international use so that they could do so. In other words, the United States should reverse global prosperity imbalances by chartering a trade deficit financed by the U.S. outfed of reserves to other nations (a deficit in the U.S. fiscal balance).

The United States could have a financial deficit, either by building plants, or by building plants, or by foreign nations. Remember that speculative investments were discouraged by the Bretton Woods agreement. Imports from other nations were not attractive in the 1950s because American technology was up to date at that time. This is how multinationals and global aid from the United States originated. [29] When the dollar was no longer tied to the price of gold, it became the monetary standard, while other currencies linked their currencies to it. The strengthening of the relative decline in American power and The dissatisfaction of Europe and Japan with the system was the continued decline of the dollar, the basis that had supported the global trading system after 1945. The Vietnam War and the government`s refusal of U.S. President Lyndon B. Johnson to pay for it and its Grand Corporation programs through taxation resulted in an increase in outflows of dollars to pay for military spending and widespread inflation, resulting in a deterioration in the U.S. trade balance. In the late 1960s, the dollar was overvalued with its current position, while the German mark and the yen were undervalued; And of course, the Germans and the Japanese did not want to revalue their exports and thus increase them, while the United States tried to preserve its international credibility by preventing devaluation.

[41] Meanwhile, the pressure on government reserves has been exacerbated by new international foreign exchange markets, with their huge pools of speculative capital in search of quick profits. [40] Never before has international monetary cooperation been attempted on a sustainable institutional basis. The decision to distribute the right to vote among governments was even more revolutionary, not on a one-vote basis, but in relation to quotas.