Question

how did bretton wood system work?

Answer 1

A new international monetary system was forged by delegates from forty-four nations in Bretton Woods, New Hampshire, in July 1944. ... Those at Bretton Woods envisioned an international monetary system that would ensure exchange rate stability, prevent competitive devaluations, and promote economic growth.

Answer 2

ANSWER :

Bretton wood system :

• The post - war international economic system is also often described as the Bretton Woods System.

⇒ Working of Bretton wood system :

• The international monetary system is the system linking national currencies and monetary system.

• The Bretton wood system was based on fixed exchange rates. In this system the national currencies were pegged to the dollar  at a fixed exchange rate.

• The Bretton woods system inaugurated an era of unprecedented growth of trade and incomes of the western industrial nations.