What was a key purpose of the Bretton Woods System established after WWII?
Understand the Problem
The question is asking about the main purpose of the Bretton Woods System that was created after World War II. The focus is on identifying the correct option that outlines its key goal regarding global finance and economic stability.
Answer
To establish economic order and cooperation post-WWII for economic recovery and growth.
The Bretton Woods System aimed to establish a system of economic order and international cooperation to help countries recover from WWII and promote long-term global economic growth.
Answer for screen readers
The Bretton Woods System aimed to establish a system of economic order and international cooperation to help countries recover from WWII and promote long-term global economic growth.
More Information
The Bretton Woods System was critical in establishing the modern system of international monetary policy. It also led to the creation of key financial institutions like the International Monetary Fund (IMF) and the World Bank.
Tips
Common mistakes include misunderstanding its role as a fixed exchange rate system based specifically on the US dollar, rather than a broader economic recovery and cooperation framework.
Sources
- Bretton Woods and the Birth of the World Bank - worldbank.org
- Creation of the Bretton Woods System | Federal Reserve History - federalreservehistory.org
- Bretton Woods-GATT, 1941–1947 - Office of the Historian - history.state.gov
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