What was the Bretton Woods Conference and when did it take place?
The Bretton Woods Conference, formally the United Nations Monetary and Financial Conference, was held from the 1st to the 22nd of July 1944 at the Mount Washington Hotel in Bretton Woods, New Hampshire. It brought together 730 delegates from 44 allied nations to design the international monetary and financial order for the postwar world.
What institutions were created by the Bretton Woods Conference?
The conference established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD, later part of the World Bank Group). Both institutions were formally organized at an inaugural meeting in Savannah, Georgia, in March 1946, after the required ratification threshold was reached on the 27th of December 1945.
Who were the key negotiators at the Bretton Woods Conference?
The two central figures were John Maynard Keynes, economic adviser to the British Chancellor of the Exchequer, and Harry Dexter White, Assistant to the U.S. Treasury Secretary. Keynes chaired the commission dealing with the IBRD, while White chaired the commission on the IMF. Eduardo Suárez, Mexico's Minister of Finance, chaired the third commission.
What was Keynes's bancor proposal at Bretton Woods?
Keynes proposed an International Clearing Union with its own currency called the bancor, exchangeable with national currencies at fixed rates. The plan would have charged interest on both trade deficits and surpluses above set thresholds, placing adjustment burdens on rich surplus nations as well as poor deficit ones. The United States rejected it, and the IMF that emerged followed Harry Dexter White's competing proposal instead.
Why did the Soviet Union not join the IMF and World Bank after Bretton Woods?
The USSR signed the Bretton Woods Final Act but declined to ratify it, objecting to the dollar's role alongside gold and describing the new institutions as branches of Wall Street. The Soviet Union never joined the IMF or IBRD; the Russian Federation joined both in 1992.
How long did the Bretton Woods exchange rate system last?
The Bretton Woods system of pegged exchange rates, under which currencies were tied to gold and governments could adjust rates only within strict limits, lasted into the early 1970s before collapsing. The system created the IMF and IBRD, both of which have continued operating long after the fixed exchange-rate framework ended.