Bretton-Woods-System

As a result, the Bretton Woods Institutions World Bank and International Monetary Fund (IMF) were created as organizations of the UN to control and enforce the Bretton Woods Agreement.

In December 1945, the IMF was founded as an institutional center of the new Bretton Woods system by international agreement. Some of the previously exclusive national decision -making rights were transferred to him. The IMF started work in May 1946. His actual operational activity began from March 1, 1947.

The Bretton Woods system suffered from the start from a construction error referred to as a fountain dilemma. The growing world trade led to an increasing need for dollar currency reserves. However, these currency reserves could only be generated by constant current account surpluses compared to the United States. As a reserve currency country, the United States did not provide the current account adaptation of other countries because the debt in its own currency was financed by abroad, as long as foreign states were interested in investing currency reserves. However, constant US performance balance deficits had to undermine confidence in the dollar at some point.

This system ended in 1973. On August 15, 1971, US President Richard Nixon raised the bond of the dollar of gold (Nixon shock). The exchange rates were released in 1973.

Keynes played a central role in designing the Bretton Woods international financial order.

The BIZ was involved in many monetary policy and financial events and developments. She was z. B. during the time of the Bretton-Woods system a forum where the presidents of the central banks involved exchanged.