In early 1945, Bernard Baruch described the spirit of Bretton Woods as follows: “If we can put an end to labour subsidies and southerly competition in export markets” and prevent the reconstruction of war machines, “… Oh, my boy, my boy, what long-term prosperity we`re going to have.  The United States therefore uses its position of influence to reopen and control the [rules] of the global economy, in order to allow unfettered access to markets and materials of all nations. The security of money by the gold standard began to become a serious problem in the late 1960s. In 1971, the problem was so serious that U.S. President Richard Nixon announced that the possibility of converting the dollar to gold was “temporarily” suspended. The stage was inevitably the last straw for the system and the agreement that sketched it. The agreement also created important international organizations such as the World Bank and the International Monetary Fund. One of the main features of the Bretton Woods system was a determined conversion between currencies and the U.S. dollar, the U.S. dollar and gold. The value of the dollar was set at 1/35th of an ounce. The values of other currencies were indexed to the U.S.
dollar. Those who held other currencies that are covered by the agreement always knew how many dollars they could get for their pounds sterling or Their French francs. As they study to boost an international career in finance, experts learn about the effects of international agreements such as Bretton Woods and the institutions they have created. Developing a strong international financial strategy means anticipating the impact of central bank announcements and actions, managed in the same way by national governments and international bodies. Below is a brief summary of why global economies were part of the Bretton Woods system, how the system worked, why it failed, and what impact the agreement had on the development of the international monetary system. Modern economists can draw a perspective and insight from the discovery of their profession`s past. To foster the growth of world trade and post-war financing of Europe, Bretton Woods planners created another institution, the International Bank for Reconstruction and Development (IBRD), one of the five agencies that make up the World Bank Group and is perhaps now the main agency [of the World Bank Group].