| − | The '''Bretton Woods Conference''' established in 1944 the [[gold]] standard upon which the leading [[economic]] nations, and particularly the [[United States]], would base their financial relations and monetary systems. 44 Allied nations sent delegates to the Mount Washington Hotel in Bretton Woods, New Hampshire, under the auspices of the [[United Nations]], to discuss and sign the Bretton Woods Agreements in July 1944. These agreements established the [[International Monetary Fund]] (IMF), which still exists, and the International Bank for Reconstruction and Development (IBRD), which is now part of the [[World Bank]] Group. | + | The '''Bretton Woods Conference''' established in 1944 the [[gold]] standard upon which the leading [[economic]] nations, and particularly the [[United States]], would base their financial relations and monetary systems. 44 Allied nations sent delegates to the Mount Washington Hotel in Bretton Woods, [[New Hampshire]], under the auspices of the [[United Nations]], to discuss and sign the Bretton Woods Agreements in July 1944. These agreements established the [[International Monetary Fund]] (IMF), which still exists, and the International Bank for Reconstruction and Development (IBRD), which is now part of the [[World Bank]] Group. |
| | The essential agreement was to establish a [[gold]] standard for the world's leading currencies. Each industrialized nation would adopt a monetary policy to maintain the exchange rate of its currency within a fixed value relative to [[gold]], plus or minus one percent. The role of the IMF was to handle temporary imbalances of payments between nations. | | The essential agreement was to establish a [[gold]] standard for the world's leading currencies. Each industrialized nation would adopt a monetary policy to maintain the exchange rate of its currency within a fixed value relative to [[gold]], plus or minus one percent. The role of the IMF was to handle temporary imbalances of payments between nations. |