Bretton Woods Agreement

When we learn The International Monetary System, the Bretton Woods Agreement is an important topic that cannot get around. The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, an area within the state of New Hampshire, United States. The agreement not only was the first example of a fully negotiated monetary order intended to govern monetary relations among independent countries, but also created two important global financial institutions: the World Bank and the International Monetary Fund. You might wonder why the world need to negotiate this agreement and establish these financial institutions? What are their major missions? Why they are so important to the international monetary market? In this video, I will answer these questions for you.