Flashcards on Breton Woods Conference: International Finance
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When and where was the Breton Woods Conference held?
The Breton Woods Conference was held in July 1944 in Bretton Woods, New Hampshire, United States.
What was the main objective of the Breton Woods Conference?
The main objective of the Breton Woods Conference was to establish a new international monetary system to promote economic stability and facilitate global trade.
Which two key institutions were created as a result of the Breton Woods Conference?
The International Monetary Fund (IMF) and the World Bank were created as a result of the Breton Woods Conference.
What role does the International Monetary Fund (IMF) play?
The International Monetary Fund (IMF) plays a role in promoting global monetary cooperation, secure financial stability, facilitate international trade, and lend to countries in need.
What role does the World Bank play?
The World Bank provides financial and technical assistance to developing countries for development projects and programs.
Which country was the driving force behind the establishment of the Breton Woods Conference?
The United States was the driving force behind the establishment of the Breton Woods Conference.
What were the key agreements reached at the Breton Woods Conference?
The key agreements reached at the Breton Woods Conference were the establishment of a fixed exchange rate system, the creation of the IMF and the World Bank, and the adoption of the U.S. dollar as the global reserve currency.
Why was the U.S. dollar chosen as the global reserve currency?
The U.S. dollar was chosen as the global reserve currency due to the economic and political dominance of the United States at that time.
What were the limitations of the Bretton Woods system?
The limitations of the Bretton Woods system included the inability to accommodate increasing global trade and the strain on the U.S. dollar as the reserve currency.
How did the collapse of the Bretton Woods system impact the global economy?
The collapse of the Bretton Woods system led to increased exchange rate volatility, currency crises, and the need for new approaches to international monetary cooperation.
What is the legacy of the Breton Woods Conference?
The legacy of the Breton Woods Conference is the establishment of institutions that continue to shape the global financial system and the recognition of the need for international cooperation in managing the global economy.
Which countries were the primary participants in the Breton Woods Conference?
The primary participants in the Breton Woods Conference were representatives from 44 Allied countries, with a significant role played by the United States and the United Kingdom.
What were the main criticisms of the Breton Woods system?
The main criticisms of the Breton Woods system were its skewed governance structure, lack of representation for developing countries, and its inability to effectively address global economic issues.
What are some alternatives to the Bretton Woods system?
Some alternatives to the Bretton Woods system include floating exchange rates, regional monetary unions, and proposals for a new global reserve currency.
How did the Breton Woods system contribute to economic stability?
The Breton Woods system contributed to economic stability by providing a framework for exchange rate stability, international cooperation, and financial assistance to countries in need.