What was the main purpose of the Bretton Woods System?
Understand the Problem
The question is asking about the main purpose of the Bretton Woods System, which was established to regulate international monetary relationships. Specifically, it seeks to identify the key objectives of this system.
Answer
To stabilize exchange rates and prevent another global economic depression.
The main purpose of the Bretton Woods System was to stabilize exchange rates and prevent another global economic depression.
Answer for screen readers
The main purpose of the Bretton Woods System was to stabilize exchange rates and prevent another global economic depression.
More Information
The Bretton Woods System, established in 1944, aimed to create stable exchange rates and promote international economic growth by preventing competitive currency devaluations.
Tips
A common mistake is confusing the establishment of economic cooperation institutions with currency stabilization goals.
Sources
- Bretton Woods Created - Federal Reserve History - federalreservehistory.org
- Bretton Woods Agreement - Investopedia - investopedia.com
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