Question

What were the distinctive features of bretton wood system?

Answer 1

First, it was a US dollar-based system. Officially, the Bretton Woods system was a gold-based system which treated all countries symmetrically, and the IMF was charged with the responsibility to manage this system.Second, it was an adjustable peg system. This means that exchange rates were normally fixed but permitted to be adjusted infrequently under certain conditionsThird, capital control was tight. This was a big difference from the Classical Gold Standard of 1879-1914, when there was free capital mobility.