Question

what is mean by bretton Woods agreement

Answer 1

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australia, and Japan after the 1944 Bretton-Woods Agreement. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states. The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained its external exchange rates within 1 percent by tying its currency to gold and the ability of the IMF to bridge temporary imbalances of payments. Also, there was a need to address the lack of cooperation among other countries and to prevent competitive devaluation of the currencies as well.

Answer 2

The Bretton Woods Agreement established the International Monetary Fund (IMF) and the World Bank for preserving global economic stability and employment in the industrial world. The agreement was finalised in July 1944 at Bretton Woods in New Hampshire, USA.