The Bretton Woods Agreement in 1944 was a joint agreement on post-war monetary policy. The name of the agreement comes from the conference venue in Bretton Woods, New Hampshire, USA. The United Kingdom, Canada and the United States have agreed on the creation of an International Monetary Fund (IMF) and the International Bank for Reconstruction and Development. This condition leads to protection and devaluation, which constantly alternates (competitive devaluation). At the end of the day, one country`s policy is simply to protect its own country and not worry about its impact on another country`s economy. The term just to describe it is begging your neighboring politics. The conference also gave the World Bank the form of the International Bank for Reconstruction and Development (IBRD) and the World Trade Organization (originally, in the form of the World Trade Organization), which then took the form of the General Agreement on Tariffs and Trade (GATT) in 1947. Since the system associates the U.S. dollar with the price of gold, the rise in the price of world gold (outside the monetary system) leads to the trade-off between the U.S.

dollar and gold. European countries with many foreign exchange reserves then trade the U.S. dollar for gold in the United States, and then gold is sold at a much higher price. However, after a very acute balance of payments imbalance in the U.S. economy, the system had to give up forever. Especially since the Vietnam War resulted in massive spending in the United States, the U.S. economy has had to bear a large balance-of-payments deficit. Twenty-five years after the adoption of the system, there has been what is called a golden or golden age of the world economy, with the exception of a Britain seriously ill because of the changing role of the former anchor of the world economy, where the pound was once used as the world`s most important currency, to be “only” a member of the system. Created in 1945 with the signing of the articles of the agreement that were the result of the Bretton Woods Conference of 1944 by 29 countries, the International Monetary Fund recommended operations in 1947[5] The mandate given to this institution under Article 1 of the original article of the treaty[2] is as follows: Zahir writes for MTrading Malaysia and contributes to the examination of the unique aspects of trade with the various media.