|
The Bretton Woods System
The Bretton
Woods system is
commonly understood to refer to the international monetary
regime that prevailed from the end of World War II until the
early 1970s. Taking its name from the site of the 1944
conference that created the International Monetary Fund (IMF) and World Bank, the Bretton Woods system
was history's first example of a fully negotiated monetary
order intended to govern currency relations among sovereign
states. In principle, the regime was designed to combine
binding legal obligations with multilateral decision-making
conducted through an international organization, the IMF,
endowed with limited supranational authority. In practice
the initial scheme, as well as its subsequent development
and ultimate demise, were directly dependent on the
preferences and policies of its most powerful member, the
United States.
Setting up a system of rules, institutions, and procedures
to regulate the international monetary system, the planners
at Bretton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction
and Development (IBRD),
which today is part of the World Bank Group.
Four points in particular stand out. First, negotiators
generally agreed that as far as they were concerned, the
interwar period had conclusively demonstrated the
fundamental disadvantages of unrestrained flexibility of exchange rates. The floating rates of
the 1930s were seen as having discouraged trade and
investment and to have encouraged destabilizing speculation
and competitive depreciations. Yet in an era of more
activist economic policy, governments were at the same time
reluctant to return to permanently fixed rates on the model
of the classical gold
standard of the
nineteenth century. Policy-makers understandably wished to
retain the right to revise currency values on occasion as
circumstances warranted. Hence a compromise was sought
between the polar alternatives of either freely floating or
irrevocably fixed rates - some arrangement that might gain
the advantages of both without suffering the disadvantages
of either.
.
Both Gold Buyers and Sellers can contact NAMC Worldwide
via email at
Gold
| Platinum
| London
Good Delivery |
Gold
Offers|
The Gold Standard |
Other Commodities
NAMC Disclaimer
Disclaimer: NAMC Worldwide is
not a U.S. Securities Broker/ Dealer nor Investment Advisor,
any offers presented on this website or presented by a
representative of NAMC worldwide requires due diligence by
providers and/or purchasers. NAMC makes no warranty as to the
validity of any financial instruments presented either on this
website or in any presented format By NAMC and states that all
required due diligence is the sole responsibility of the
provider and/or purchaser, their legal representatives and/or
assigns. however NAMC worldwide will make every effort to
assist the provider and/or purchaser in their preliminary due
diligence process.
NAMC Worldwide
Confidentiality
Professionalism
Communication
|
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/tny_au_en_usoz_2.gif)